executive committee agenda - l.a. care
TRANSCRIPT
EXECUTIVE COMMITTEE MEETING
Board of Governors
February 22, 2021 ● 2:00 PM
L.A. Care Health Plan
1055 W. 7th Street, Los Angeles, CA 90017
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2/19/2021 7:59 AM
AGENDA Executive Committee Meeting Board of Governors Monday, February 22, 2021, 2:00 P.M. L.A. Care Health Plan, 1055 West 7th Street, 10th Floor, Los Angeles
California Governor issued Executive Orders No. N-25-20 and N-29-20, which among other provisions amend the Ralph M. Brown Act. Accordingly, members of the public should now
listen to this meeting via teleconference as follows:
To join and LISTEN ONLY via videoconference please register by using the link below: https://lacare.webex.com/lacare/j.php?MTID=mc13431cb7c4953dfe536db59fd67794a
To join and LISTEN ONLY via teleconference please dial: (213) 306-3065 or (415) 655-0002 Access code: 187 372 2396
Members of the Executive Committee or staff may also participate in this meeting via teleconference. The public may listen to the Executive Committee’s meeting by teleconference.
The public is encouraged to submit its public comments or comments on Agenda items in writing. You can e-mail public comments to [email protected], or send a text or
voicemail to: 213 628-6420.
The text, voicemail, or email must indicate if you wish to be identified or remain anonymous, and must also include the name of the Agenda item to which your comment relates.
Comments received by voicemail, email or text by 2:00 pm on February 22, 2021 will be provided in writing to the members of the Board of Governors that serve on the Executive Committee. Public
comments submitted will be read for 3 minutes.
Once the meeting has started, voicemails, emails and texts for public comment should be submitted before the item is called by the meeting Chair. If you wish to submit public comment on an Agenda item, you
must submit it at any time prior to the time the Chair announces the item and asks for public comment. The Chair will announce when public comment period is over.
All votes in a teleconferenced meeting shall be conducted by roll call. If you are an individual with a disability and need a reasonable modification or accommodation pursuant
to the Americans with Disabilities Act (“ADA”) please contact L.A. Care Board Services staff prior to the meeting for assistance by text to 213 628-6420 or by email to [email protected].
WELCOME
Hector De La Torre, Chair
1. Approve today’s meeting Agenda Chair
2. Public Comment (please see instructions above)
Chair
3. Approve January 25, 2021 Meeting Minutes
Chair
4. Chair’s Report
Chair
5. Chief Executive Officer Report
FY 2019-20 Year-End Sponsorship Report
John Baackes Chief Executive Officer
COMMITTEE ITEMS
6. Government Affairs Update
Cherie Compartore Senior Director, Government Affairs
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2/19/2021 7:59 AM
7. Revised Communications Policy COMM 006 (Sponsorships) (EXE 100)
Francisco Oaxaca Chief of Communications & Community Relations
8. L.A. Care Cash Balance Plan Restatement (EXE A)
Terry Brown Chief Human Resources Officer
9. Approve the list of items that will be considered on a Consent Agenda for March 4, 2021 Board of Governors Meeting
Minutes of December 3, 2020 Board of Governors Meeting
Revised Communications Policy COMM 006 (Sponsorships)
TransUnion Contract Amendment
Chair
ADJOURN TO CLOSED SESSION (Est. time: 30 mins.)
Chair
10. CONTRACT RATES Pursuant to Welfare and Institutions Code Section 14087.38(m)
Plan Partner Rates
Provider Rates
DHCS Rates
11. REPORT INVOLVING TRADE SECRET Pursuant to Welfare and Institutions Code Section 14087.38(n) Discussion Concerning New Service, Program, Business Plan Estimated date of public disclosure: February 2023
12. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Section 54956.9(d) (2) of Ralph M. Brown Act Three Potential Cases
13. CONFERENCE WITH LABOR NEGOTIATOR Section 54957.6 of the Ralph M. Brown Act Agency Designated Representative: Hector De La Torre Unrepresented Employee: John Baackes
14. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Section 54957 of the Ralph M. Brown Act Title: Chief Executive Officer
RECONVENE IN OPEN SESSION
ADJOURN Chair The next Executive Committee is scheduled on Monday, March 22, 2021 at 2:00 p.m.
Public comments will be read for three minutes or less. The order of items appearing on the agenda may change during the meeting.
If a teleconference location is listed at the top of this agenda, the public can listen to the meeting by calling the teleconference call in number provided. If teleconference arrangements are listed at the top of this Agenda, note that the arrangements may change prior to the meeting.
ACTION MAY NOT BE TAKEN ON ANY MATTER RAISED DURING THE PUBLIC COMMENT PERIODS UNTIL THE MATTER IS SPECIFICALLY LISTED ON A FUTURE AGENDA, according to California Government Code Section 54954.2 (a)(3) and Section 54954.3.
NOTE: THE EXECUTIVE COMMITTEE CURRENTLY MEETS ON THE FOURTH MONDAY OF MOST MONTHS AT 2:00 P.M. POSTED AGENDA and MEETING MATERIALS ARE AVAILABLE FOR INSPECTION AT www.lacare.org.
Any documents distributed to a majority of the Board Members regarding any agenda item for an open session after the agenda has been posted will be available at www.lacare.org.
AN AUDIO RECORDING OF THE MEETING MAY BE MADE TO ASSIST IN WRITING THE MINUTES AND IS RETAINED FOR 30 DAYS.
Meetings are accessible to people with disabilities. Individuals who may require any accommodations (alternative formats – i.e., large print, audio, translation of meeting materials, interpretation, etc.) to participate in this meeting and wish to request an alternative format for the agenda, meeting notice, and meeting packet may contact L.A. Care’s Board Services
Department at (213) 694-1250. Notification at least one week before the meeting will enable us to make reasonable arrangements to ensure accessibility to the meetings and to the related materials.
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DRAFT
BOARD OF GOVERNORS Executive Committee
Meeting Minutes – January 25, 2021 1055 West 7th Street, Los Angeles, CA 90017
Members Management/Staff Hector De La Torre, Chairperson John Baackes, Chief Executive Officer Al Ballesteros, Vice Chairperson Terry Brown, Chief Human Resources Officer Robert H. Curry, Treasurer Augustavia J. Haydel, Esq., General Counsel Layla Gonzalez, Secretary Marie Montgomery, Chief Financial Officer Stephanie Booth, MD Tom MacDougall, Chief Information & Technology Officer Hilda Perez Francisco Oaxaca, Chief of Communications & Community Relations Noah Paley, Chief of Staff Acacia Reed, Deputy Chief Operating Officer Richard Seidman, MD, MPH, Chief Medical Officer
California Governor issued Executive Order No. N-25-20 and N-29-20, which among other provisions amend the Ralph M. Brown Act. Members of the public can listen to this meeting via teleconference.
AGENDA ITEM/PRESENTER
MOTIONS / MAJOR DISCUSSIONS
ACTION TAKEN
CALL TO ORDER
Alvaro Ballesteros, Vice-Chairperson, called to order at 2:25 p.m. the L.A. Care Executive Committee and the L.A. Care Joint Powers Authority Executive Committee meetings. The meetings were held simultaneously. He welcomed everyone to the meetings.
For those who provided public comment for this meeting by voice message or in writing: we are really glad that you provided input today. The Committee will hear your comments and we also have to finish the business on our Agenda today.
If you have access to the internet, the materials for today’s meeting are available at the lacare.org website. If you need information about how to locate the meeting materials, please let us know.
Information for public comment is on the Agenda available on the web site. Staff will read the comment from each person for up to three minutes.
The Chairperson will invite public comment before the Committee starts to discuss the item. If the comment is not on a specific agenda item, it will be read at the general Public Comment item 2 on today’s agenda.
APPROVE MEETING AGENDA
The Agenda for today’s meeting was approved.
Approved unanimously by roll call. 5 AYES
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AGENDA ITEM/PRESENTER
MOTIONS / MAJOR DISCUSSIONS
ACTION TAKEN
(Ballesteros, Booth, Curry, Gonzalez and Perez)
PUBLIC COMMENTS There were no public comments.
APPROVE MEETING MINUTES
(Chairperson De La Torre joined the meeting.) The minutes of the November 16, 2020 meeting were approved with clarification of Board Member Booth’s comments.
Approved unanimously by roll call. 6 AYES (Ballesteros, Booth, Curry, De La Torre, Gonzalez and Perez)
CHAIRPERSON’S REPORT
There was no report from the Chairperson.
CHIEF EXECUTIVE OFFICER REPORT
John Baackes, Chief Executive Officer, reported:
L.A. Care is continuing to function well in a remote setting and is meeting metrics for performance as a health plan.
It was reported at the Finance & Budget Committee earlier that L.A. Care has a revised financial forecast for the fiscal year based on the first quarter financial results and new rates that were effective January 1. The new rates were received in December, and materially improved the financial forecast by about $100 million. The projected operating loss is under $70 million.
L.A. Care adopted initiatives to restructure for efficiency, and is looking for redundancy in activities that can be consolidated. This has been ongoing over the last 4-5 years through changes in the management system. L.A. Care is also working to eliminate silos that were not working cross functionally.
A medical cost steering committee has identified over $100 million in opportunities for cost savings.
L.A. Care has a goal to overcome the projected loss in the 3+9 forecast.
By the end of this fiscal year, L.A. Care should be in a good financial position for the future to generate operating surplus and replenish the reserves, both required and unassigned.
L.A. Care is supporting the distribution of the COVID-19 vaccines. L.A. Care’s role is to provide accurate information to members and providers about when and where
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1st Quarter FY 2020-21 Strategic Vision 2021 Progress Report
to access the vaccine. Based on early reports, L.A. Care recognizes that 30% to 50% of frontline health workers in some sites are refusing the vaccine. L.A. Care will provide an educational effort with members to assure them that the that vaccine is safe and that they are better off getting the vaccine than not getting the vaccine.
L.A. Care also acknowledges a continuing responsibility to educate members and the workforce, even after getting the vaccine, that safety measures should be continued: masks, social distancing, hand hygiene, and avoiding gatherings with people outside one’s immediate household, until an acceptable level of community or herd immunity is reached.
L.A. Care is exploring with pharmacy partners if it would be possible to offer the vaccine through the Community Resource Centers (CRCs). This will depend on availability of the vaccine.
Through the fall of last year, up to December, L.A. Care conducted nine very successful flu vaccine clinics at the CRCs. If it is possible to increase access to the COVID-19 vaccine, L.A. Care will do it.
Mr. Baackes noted that he will provide a more detailed report at next week’s Board meeting (February 4).
Mr. Baackes referred Board Members to the 2021 Strategic Vision Progress quarterly written report included in the meeting materials.
Member Ballesteros commented that community health stakeholders, including those at Federally Qualified Health Centers (FQHC), have concerns that the vaccine needs to be available in the communities where people are most affected by the pandemic. They are concerned about equity, particularly among low income and uninsured individuals and Latino, African American and Pacific Islanders. They do not have access to the vaccine in the same way as other populations. Many are FQHC patients and also L.A. Care members. He suggested that there needs to be a stronger stance to go on the record about the need for equity in vaccine distribution. He stated that it is very difficult for members of these populations to get to Dodger Stadium or other locations where the vaccine is being mass distributed. Community centers are in locations that are easily accessible to individuals that are homeless or underserved in the community, and there should be influence to have the vaccine distributed from these sites.
Mr. Baackes noted that this issue has been raised by the local initiative health plans in California. The plans are very concerned that the vulnerable members are not able to
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access the vaccine in timely manner. L.A. Care is working with provider and pharmacy partners to plan for distribution in the community, potentially at CRCs, to provide access that would not otherwise be there for those members.
Richard Seidman, MD MPH, Chief Medical Officer, agreed with the need for access and noted that L.A. Care is working closely with Los Angeles County officials, and there are many who are advocating for improved access in the communities. He reported that he participates in a virtual meeting with Los Angeles County Department of Public Health (DPH) representatives every two weeks for a Vaccine Work Group. There are many in that group calling for increased access. DPH has a vaccine equity task force that is pushing hard for transparency and for vaccine distribution in the parts of Los Angeles County that need it most. Louise McCarthy, President and CEO, Community Clinic Association of Los Angeles County (CCALAC), has sent a letter advocating for FQHCs to participate in vaccine distribution. A reality is that as hard as CCALAC may push for more vaccines to be sent to the FQHCs, the DPH, along with other vaccine prioritization bodies, has to walk a razor thin margin to advocate for those communities disproportionately impacted while balancing pressure from elected officials to open vaccine distribution to people 65 years or older. It is great to add the access to a vaccine to those older residents, but it added 1.6 million people in Los Angeles County overnight to the vaccine distribution process, without a reliable supply of vaccine. The distribution needs to be balanced, and L.A. Care is on the front lines to assist in many ways, including encouraging employees to volunteer and setting up vaccine clinics with pharmacy partners.
Member Ballesteros commented that it is great that L.A. Care is working on equity in vaccine distribution. He thinks that in order to deal with equity issues, the FQHCs have to get a vaccine supply on site for delivery of ? it to their patients and their panels. The physicians that are L.A. Care providers know the patients in their panels who are most at risk. Through electronic health systems, clinics have the ability to stratify the patient list and identify individuals at most risk for getting sick or dying. Having vaccine available to providers in the safety net clinics will help to address the equity issue. Other health systems have received direct allocation of vaccines, and there should be strong advocacy by L.A. Care for direct allocation of vaccine to the community clinics.
Mr. Baackes stated that L.A. Care supports direct allocation to safety net clinics. L.A. Care is currently outside the distribution process. If L.A. Care becomes directly involved in the distribution through its pharmacy partners, it will try to identify the people with
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highest risk and highest need to receive the vaccine, in consultation with safety net clinics. Member Ballesteros applauded the work of L.A. Care, and noted that his proposal for vaccine allocation to safety net clinics is an added distribution process among community members who are at highest risk, and would help address equity issues.
Member Perez agreed with Member Ballesteros, and she noted that statistics indicate that black and brown communities and the most vulnerable communities that L.A. Care serves are being hit very hard. There is a lot of misinformation about the vaccine in those communities as well. She thanked Member Ballesteros for raising the topic and for advocating here and at other agencies. She is glad to be part of this Board and part of the efforts of L.A. Care with regard to the idea of L.A. Care holding COVID-19 vaccine clinics, as we did with the flu vaccine. She is eager to educate the communities to let them know where to go to get a vaccine and advocate for more doses in these communities and to guide the L.A. Care members to go get a vaccination.
Member Gonzalez noted that the County is starting to implement vaccinations for seniors. Seniors do not have much access, and many do not have any access, to the internet, and have to rely on the phone to arrange a vaccine appointment. It is very difficult to get an appointment right now, and she asked what kind of effort, if any, is L.A. Care doing to help these seniors get a vaccination?
Mr. Baackes responded that he reported earlier that L.A. Care’s current role in COVID-19 vaccinations is as a trusted source of information. L.A. Care relies on Dr. Seidman’s close work with the DPH to make sure L.A. Care has the most accurate information on where people can receive a vaccination, and to make sure that information is available for members. Another issue that will impact the vaccination distribution is that there are two more vaccines expected to be made available between now and April. There will be a greater supply of vaccines available and that should help with the distribution. L.A. Care conducted outreach for COVID-19 testing, focused on L.A. Care’s most vulnerable patients based on internal data. Outreach on test availability was also conducted for the African American and Latino communities. L.A. Care continues its efforts to reach out to members with information about vaccine availability. L.A. Care will continue to work with pharmacy and provider partners with access to the vaccine, to develop a program that aligns with public health distribution requirements, and will reach out to members that qualify under those public health distribution rules.
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Dr. Seidman added that L.A. Care’s call center agents have updated information to provide to members, and the website is updated with the latest information about COVID-19, testing and the vaccine. The phone number to sign up for an appointment to receive the vaccine is included. L.A. Care is encouraging patience and persistence in making the vaccine appointment, as it is difficult to get appointments. It is expected that availability will improve over time.
Member Gonzalez thanked Mr. Baackes and Dr. Seidman for the information, and she thanked them for all the work being done to increase access.
Member Booth asked in reference to Member Centric Care in the Strategic Vision 2021 Progress Report, is there any leveling out of patient satisfaction scoring between groups based on health status? She includes health plans and provider groups in this question.
Mr. Baackes responded that subscriber satisfaction is measured through Consumer Assessment of Healthcare Providers and Systems (CAHPS), which is a random survey conducted by Centers for Medicare and Medicaid Services (CMS). Health plans do not have access to the information on which subscribers are randomly contacted for the survey. It would not be possible to correlate the health status of respondents to the survey. Dr. Seidman noted that there is a separate commercial version of the member experience survey. There is no indication of health status in the CAHPS survey.
Dr. Booth asked for information on the successful reporting by telehealth providers to the patients’ primary care physician following telehealth visits. Dr. Seidman responded that when a patient visits an urgent care center or emergency room outside of L.A. Care’s contracted providers, it is expected that a visit summary will be provided to the patient, that the patient is expected to provide to their primary care physician (PCP). That is the traditional standard of care. L.A. Care requires in its contracts with Minute Clinic and Teledoc provider that visit summaries are faxed or made available to the PCP of record. There is no such provision in L.A. Care’s typical urgent care or emergency room contracts. Both Minute Clinic and Teledoc make every effort to provide the visit summary to the PCP. Dr. Seidman will provide Dr. Booth with data on this process.
Government Affairs Update
Cherie Compartore, Senior Director, Government Affairs, reported:
California’s State budget will be presented differently this year due to the pandemic. Prior to release of the January Budget proposal, California’s Governor asked the Legislature to take immediate action on two items:
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AGENDA ITEM/PRESENTER
MOTIONS / MAJOR DISCUSSIONS
ACTION TAKEN
o $600 cash support for individuals o Extension of eviction provisions
The legislature was not able to take action as quickly as the Governor requested due to a variety of factors. The legislature was able to reach agreement today to extend the eviction protections from January 31 to July 1, 2021.
Chairperson De La Torre noted that it is important to include that state legislators are waiting to see if there is pandemic relief package approved at the federal level, which could include significant funding for California.
Revisions to Communications Policy COMM 004 (Social Media)
Francisco Oaxaca, Chief of Communications and Community Relations, summarized a motion to approve revisions to the Communications Social Media Policy, which applies to employees and business associates, including Board Members.
L.A. Care staff requests approval to execute a policy revision to the attached COMM-004 Social Media policy. The revision provides for the addition of a link on L.A. Care social media platforms that will direct social media users to? L.A. Care’s Social Media Guidelines. These Social Media Guidelines are included in section 4.1 of the attached revised policy. Communications has added this section in alignment with industry best practices to regularly monitor and moderate comments, including removing hate speech, private health information, spam, and other unacceptable content posted by social media users on any L.A. Care authorized social accounts.
Communications staff has also added an email address ([email protected]) for social media inquiries or requests; this email address has been added to sections 1.2, 1.3, and 3.1.4 of the policy. The policy also includes provisions which guide L.A. Care employees on social media use.
The edits in the policy have been reviewed by L.A. Care’s Information Technology, Human Resources, and Legal departments.
Member Booth commented on section 4.2.3.1, that it is vague and open to alternate interpretation and should be clarified. Mr. Oaxaca offered to consult with colleagues regarding that section.
Member Perez thanked staff for listening to member suggestions and concerns. There is a lot of L.A. Care staff working on this to help members get the resources and access to
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care that they need. She also thanked L.A. Care for including health promoters in the survey related to misinformation on COVID-19 and the vaccine timeline.
Member Ballesteros asked for more information on section 4.2.3.6. Mr. Oaxaca responded that this refers to other policies that are more general in scope related to prohibition of unlawful discrimination, harassment or retaliation in the workplace. Employee use of social media is included in those prohibitions.
Motion EXE 100.0221 To approve revisions to Communications Policy COMM-004 (Social Media), as submitted.
Approved unanimously by roll call. 6 AYES
Cafeteria Plan Amendment
Terry Brown, Chief Human Resources Officer, summarized the amendments to the Cafeteria Plan. The proposed technical amendment allows midyear changes to those accounts and roll over into 2021, and increases carry overs:
Permit employees who cease participation in the Health Flexible Spending Arrangement (“Health FSA”) during 2020 or 2021 to use any unused Health FSA account balance to reimburse medical expenses incurred during the remainder of the year in which participation ceases,
Permit Health FSA election changes during 2020,
Permit Health FSA and Dependent Care Assistance Program (“DCAP”) election changes during 2021,
Permit the Health FSA to reimburse expenses for drugs or medicines without a prescription,
Increase the limit on carryovers of unused Health FSA balances from $500 to $550 and provide for unlimited carryover of unused Health FSA balances for 2020 and 2021,
Extend the Health FSA claims submission deadline for 2019 medical expenses from March 1, 2020, until the 90th day after the COVID-19 National Emergency is declared to end,
Permit DCAP participants whose qualifying child reached age 13 in 2020 to continue to receive reimbursements for eligible dependent care expenses incurred for that child during the remainder of 2020 and, for those who still have an unused DCAP account balance, 2021 until the child reaches age 14 (but only with respect to the unused balance), and
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ACTION TAKEN
Provide for the unlimited carryover of unused DCAP account balances for 2020 and 2021.
Motion EXE A.0121 To approve the amendment to the L.A. Care Health Plan Cafeteria Plan, in the form attached hereto, effective as of the dates set forth in the amendment.
Approved unanimously by roll call. 6 AYES
Approve the Consent Agenda for February 4, 2021 Board of Governors meeting
Approve the list of items that will be considered on a Consent Agenda for February 4, 2021 Board of Governors Meeting.
December 3, 2020 Board of Governors meeting minutes
Revised Communications Policy COMM 004 (Social Media)
Quarterly Investment Report
2021 Compliance Work Plan
2021 Delegation Oversight Work Plan
2021 Risk Assessment
Approved unanimously by roll call. 6 AYES
PUBLIC COMMENTS
There were no public comments for the closed session items.
ADJOURN TO CLOSED SESSION
Augustavia J. Haydel, Esq., General Counsel, announced the items to be discussed in closed session. She announced there is no report anticipated from the closed session. The meeting adjourned to closed session at 3:20 p.m.
CONTRACT RATES Pursuant to Welfare and Institutions Code Section 14087.38(m)
Plan Partner Rates
Provider Rates
DHCS Rates
REPORT INVOLVING TRADE SECRET Pursuant to Welfare and Institutions Code Section 14087.38(n) Discussion Concerning New Service, Program, Business Plan Estimated date of public disclosure: January 2021
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Section 54956.9(d) (2) of Ralph M. Brown Act One Potential Case
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CONFERENCE WITH LABOR NEGOTIATOR Section 54957.6 of the Ralph M. Brown Act Agency Designated Representative: Hector De La Torre Unrepresented Employee: John Baackes
RECONVENE IN OPEN SESSION
The meeting reconvened in open session at 3:55 pm. No reportable actions were taken during the closed session.
ADJOURNMENT The meeting adjourned at 3:55 p.m.
Respectfully submitted by: APPROVED BY:
Linda Merkens, Senior Manager, Board Services Malou Balones, Board Specialist III, Board Services ____________________________________________ Victor Rodriguez, Board Specialist II, Board Services Hector De La Torre, Chair Date: _______________________________________
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Page 1 of 2
February 22, 2021 TO: Hector De La Torre, Chair, Executive Committee VIA: Francisco Oaxaca, Chief, Communications & Community Relations FROM: Mariah Walton, Community Relations Specialist SUBJECT: Fiscal Year 2019-2020 Sponsorship Report Staff submits the annual sponsorship report to the Board, as required by L.A. Care policy 603. Fiscal Year Highlights This year presented unique opportunities for partnerships due to the nature of the current public health crisis. Staff made many adjustments to the types of requests L.A. Care sponsored and how the health plan engaged with partners in FY 2019-2020, to better serve members and the community during the pandemic. All sponsorships were carefully reviewed to determine whether the requesting organization and/or the event met the requirements of L.A. Care’s sponsorship policies. Special consideration was given if 1) the organization provided immediate COVID-19 relief; 2) the event offered considerable exposure to L.A. Care; 3) the organization was a CHIF grantee; 4) the organization was within L.A. Care’s provider network; 5) the event focused on one or more of L.A. Care’s identified Social Determinants of Health (SDOH) priority areas; or 6) an L.A. Care department was interested in participating. At the onset of the COVID-19 pandemic in March 2020, L.A. Care leadership repurposed the remaining balance from the sponsorships budget to be used as part of the organization-wide COVID-19 response efforts for members. Even with that change, staff reviewed and managed 185 sponsorship requests and grantee events from local, state and national organizations. Eighty-six sponsorships were approved, and 97 were declined; a total of $651,898 was awarded. Given the food insecurity needs that were made worse by the pandemic, the Communications department focused on collaborating with the Community Resource Centers to identify new and existing organizations to partner with on a series of 37 food pantry events in the community. The team also pivoted its strategy of engagement by increasing the number of in-kind promotional item donations from two in FYE 2019 to 18 in FYE 2020. This strategy provided the opportunity to continue elevating L.A. Care’s brand while engaging with our partners and members through the distribution of L.A. Care-branded materials, such as hand-sanitizers, reusable tote bags for food distributions, and stress balls. Furthermore, other Communications department channels including social media, public relations and digital platforms were leveraged to highlight many sponsored events and engage with partners.
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The Communications team also worked closely with the Community Benefits team to manage 12 grantee events through which L.A. Care received sponsorship benefits as a part of their grant agreements. This allows L.A. Care to maximize the reach of the sponsorship budget and to take into consideration new allocations and partnerships. Sponsorship by RCAC Region Most sponsored events supported organizations that offer services to residents across all of L.A. County. Although not a significant difference, RCAC regions four and six were the most sponsored areas (see figure 1)—this aligns with L.A. Care member density maps, which show the highest member density in RCAC 6.
Figure 1. Many sponsored organizations service more than one RCAC. Therefore, the total will exceed the total number of approved sponsorships (86).
Social Determinants of Health The Communications team focused on cultivating new partnerships with community-based organizations that address SDOH. Of the 86 approved sponsorships, 78 were sponsorships addressing SDOH—totaling about 90% of all awarded sponsorships. A few of those organizations were Community Healing Gardens, Food Forward, Get Together Foundation, and Star View Children and Family Services. Staff will continue to identify and collaborate with organizations that enhance the diversity of the organization’s Sponsorship Program, with a special focus on targeting several SDOH areas, including but not limited to social justice and health equity organizations. COVID-19 Response Efforts At the onset of the pandemic, the Communications team pivoted to lock arms with L.A. Care partners to respond to the immediate needs of Angelenos. L.A. Care sponsored 14 organizations that hosted 37 food pantry events in partnership with the Community Resource Centers, and five organizations that distributed handwashing kits, toiletries, and hand sanitizers, or that assisted with housing eviction prevention. Sponsored collaborators included the Eviction Defense Network, Antelope Valley Dream Center, God’s Pantry, Seeds of Hope, Downey First Christian Church, Hope of the Valley, YMCA, Meet Each Need with Dignity (MEND), Southern California Resource Services for the Independent Living (SCRS-IL), and the Los Angeles Education Program. Sponsorships totaling $239,500 were awarded for L.A. Care’s COVID-19 response efforts, accounting for almost 40% of all sponsorship dollars spent. In the coming fiscal year, the Communications team will continue to identify organizations that are meeting immediate COVID-19 needs, that serve members and support the safety net, or that fall within the scope of SDOH, social justice and/or health equity efforts. The team will continue to create partnerships and sponsorships that align with the 2021 vision to make L.A. Care a recognized leader in improving health for low income and vulnerable communities. Please reference the FY 2019-2020 sponsorship log for further details on individual sponsorships.
45 4642
50
42
5045 43
4045
42
0
10
20
30
40
50
60
RCAC 1 RCAC 2 RCAC 3 RCAC 4 RCAC 5 RCAC 6 RCAC 7 RCAC 8 RCAC 9 RCAC 10 RCAC 11
Count of Sponsored Organizations by RCAC
15
Key
Approved Sponsorships
Recognized at grantee event, no sponsorship dollars spent
In-kind promotional item donations
Event Date Status Category Organization Event Amount
10/1/2019 APPROVED Community Fair
Consulate General of Mexico in
L.A. Angeles/ Fiesta Educativa,
Inc.
2019-2020 Guia de
Salud/Health Guide$ 10,000
10/3/2019 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
National Immigration Law
Center
Provider Webinar on
Public Charge$ 3,000
10/5/2019 APPROVEDDinner/Gala/ Luncheon/
Reception
Family Health Care Centers of
Greater Los AngelesBenefit Gala $ 5,000
10/6/2019 APPROVED Community Fair Special Olympics of SoCal Pier Del Sol $ 2,500
10/6/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionAlliance for Housing and Healing Best in Drag show $ 5,000
10/6/2019 APPROVED Community FairSouthern California Resource
Services for Independent LivingDisability Pride Parade $ 7,500
10/10/2019 GRANTEEDinner/Gala/ Luncheon/
ReceptionCHIRLA Together We Stand $ -
10/11/2019 APPROVEDDinner/Gala/ Luncheon/
Reception
La Casa de San Gabriel
Community Center
Annual Fundraising
Dinner$ 2,500
10/12/2019 APPROVED Community Fair LAC+USC Medical Center Kidz Health Fair $ 1,000
10/13/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionImagine LA Imagine Ball $ 5,000
10/13/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionThe Children's Clinic Anniversary Gala $ 2,500
10/13/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionNational Kidney Foundation Kidney Walk $ 2,500
10/13/2019 APPROVED Community Fair Familia UnidaWheelchair Wash Health
Festival$ 5,000
10/13/2019 APPROVED Run/Walk/ Health Fair Valley VillageVillage Run/Walk Health
Fair$ 5,000
10/14/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionLA Business Journal Leaders in Law $ 2,000
10/17/2019 APPROVEDDinner/Gala/ Luncheon/
Reception
Asian American's Advancing
JusticeAnniversary Dinner $ 3,500
10/18/2019 GRANTEE Community Fair LA Chamber of CommerceHealth Career Education
Track$ -
10/19/2019 APPROVED Community Fair LACGCGathering of Community
Gardens$ 5,000
10/19/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionJWCH Institute, Inc.
Wesley Benefit Dinner &
Dinner$ 10,000
10/19/2019 APPROVED Health Fair KJLH Taste of Soul $ 15,000
10/19/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionSpecial Needs Network Evening Under the Stars $ 5,000
10/19/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionThe Achievable Foundation Annual Achiever's Gala $ 10,000
10/20/2019 APPROVED Community Fair Family Focus Resource CenterSpecial Needs Resource
Fair$ 1,000
10/23/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionKheir Clinic
Fundraising Dinner &
Awards$ 3,000
10/24/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionCommunity Coalition
People Power Progress
Awards$ 5,000
10/24/2019 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingFiesta Educativa INC. Statewide Conference $ 500
10/25/2019 APPROVED Community Event City of Los Angeles ReelAbilities Film Festival $ 2,500
10/25/2019 APPROVEDDinner/Gala/ Luncheon/
Reception
Mexican American Opportunity
FoundationAztec Awards Gala $ 5,000
10/26/2019 APPROVED Community FairAntelope Valley Partners for
Health
AV Community Resource
Fair$ 2,500
FY 2019-2020 Sponsorships
Page 1 of 4 16
Key
Approved Sponsorships
Recognized at grantee event, no sponsorship dollars spent
In-kind promotional item donations
Event Date Status Category Organization Event Amount
FY 2019-2020 Sponsorships
10/27/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionThe Positive Results Corp Purple Purse Tea Party $ 500
11/1/2019 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
Community Clinic Association of
Los Angeles CountyThe Research Fast Pitch $ 3,000
11/4/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionLibrary Foundation Literary Feast $ 5,000
11/7/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionPeace Over Violence An Evening Over Violence $ 5,000
11/8/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionLACMA LA Healthcare Awards $ 5,000
11/8/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionAltaMed 50th Anniversary Gala $ 15,000
11/9/2019 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingUSC Leonard Davis C.A.L.M. Conference $ 3,000
11/10/2019 APPROVEDDinner/Gala/ Luncheon/
Reception
Association of Black Women
Physicians
Charity & Scholarship
Benefit$ 5,000
11/13/2019 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
Personal Assitance Services
Council (PASC)Annual Open House $ 2,500
11/15/2019 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
Antelope Valley Partners for
HealthAV Wellness Symposium $ 2,500
11/15/2019 APPROVED Community Fair Care Harbor Care Harbor LA $ 15,000
11/16/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionFrom Lot to Spot Benefit Dinner $ 5,000
11/19/2019 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
California Assoc. of Area
Agencies on Aging
C4A Annual Meeting &
Allied Conference$ 5,000
11/21/2019 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingFamilies in Schools Alliance Summit $ 2,500
12/1/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionD.I.V.A. Foundation AIDS Fundraiser $ 1,500
12/7/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionEisner Health Winter Festival $ 1,000
12/7/2019 APPROVEDDinner/Gala/ Luncheon/
ReceptionUnited Friends of the Children
Cultivate LA-Combined
Sponsorship$ 2,500
12/30/2019 APPROVED Branding LA Business JournalBook of Lists
(Advertisment)$ 3,000
1/13/2020 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingMaternal Mental Health Now
Sex & Perinatal Mental
Health$ 5,000
1/16/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionLA Business Journal Economic Forecast $ 5,000
1/18/2020 APPROVED Community Fair Be Social Productions Community Health Fair $ 3,000
1/25/2020 APPROVED Community Fair Forgotten Children, Inc Family Unity Festival $ 1,500
1/30/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionLA Chamber of Commerce Inaugural Dinner $ 11,000
2/12/2020 IN-KINDDivision of Chronic Disease and
Injury PreventionPROMO-ASSORTMENT $ 468
2/13/2020 APPROVEDDinner/Gala/ Luncheon/
Reception
Charles Drew University School
of MedicinePresident's Breakfast $ 7,500
2/24/2020 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingITUP Annual Conference $ 5,000
3/4/2020 IN-KIND Food Forward PROMO-BAGS $ 1,891
3/5/2020 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingThe Children's Partnership State of the Child $ 1,000
3/10/2020 IN-KIND APLA Health PROMO-ASSORTMENT $ 781
3/23/2020 APPROVED COVID-19 Get Together Foundation Handwashing Kit $ 5,000
3/26/2020 APPROVED COVID-19 Eviction Defense Network Eviction Prevention $ 20,000
Page 2 of 4 17
Key
Approved Sponsorships
Recognized at grantee event, no sponsorship dollars spent
In-kind promotional item donations
Event Date Status Category Organization Event Amount
FY 2019-2020 Sponsorships
3/26/2020 IN-KIND Food Forward PROMO-BAGS $ 2,400
3/27/2020 APPROVED COVID-19Star View Children and Family
ServicesDiaper Distribution $ 5,000
3/30/2020 IN-KIND APLA Health PROMO-LIP BALM $ 2,000
4/1/2020 IN-KINDSouthern California Resource
Services for Independent LivingPROMO-ASSORTMENT $ 965
4/2/2020 APPROVED COVID-19Southern California Resource
Services for Independent LivingBasic Needs/Food $ 10,000
4/2/2020 APPROVED COVID-19 Hope of the ValleyShelter-Food & Basic
needs$ 20,000
4/3/2020 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
Community Clinic Association of
Los Angeles CountyHealth Care Symposium $ 15,000
4/3/2020 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
Community Clinic Association of
Los Angeles CountyPolicy Café $ 7,000
4/3/2020 APPROVEDConference/ Symposium/
Forum/Summit/ Meeting
Community Clinic Association of
Los Angeles County
Outreach & Enrollment
Summit$ 2,000
4/4/2020 APPROVED Community Fair St. Barnabas Senior Services Aging Into the Future $ 10,000
4/4/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionFood Forward Spring Melt $ 10,000
4/9/2020 IN-KIND Food Forward PROMO-BAGS $ 2,400
4/9/2020 IN-KIND Food Forward PROMO-BAGS $ 2,400
4/25/2020 APPROVED Community Fair Community Healing Gardens Earth Day $ 24,498
4/30/2020 IN-KIND Imagine LA PROMO-ASSORTMENT $ 277
5/11/2020 IN-KINDAntelope Valley Partners for
healthPROMO-BAGS $ 600
5/14/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionUnited Friends of the Children Brass Rings $ 5,000
6/1/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionAchieveable Foundation Evening with Achievable $ 5,000
6/1/2020 APPROVED Community Fair American Heart Association Heart Walk $ 10,000
6/4/2020 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingLAAAC Summit on Aging $ 15,000
6/13/2020 APPROVED Community Fair United Friends of the Children College and Career Day $ 8,000
6/15/2020 IN-KIND OneGeneration PROMO-BAGS $ 600
6/25/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionLA Business Journal
Women's Council &
Awards$ 12,000
6/30/2020 IN-KINDStarView Children and Family
ServicesPROMO-ASSORTMENT $ 360
6/30/2020 IN-KIND Southside Coalition PROMO-BAGS $ 3,000
7/2/2020 IN-KINDSpeak Up Empowerment
FoundationPROMO-ASSORTMENT $ 2,555
7/2/2020 IN-KIND Alzheimers LA PROMO-ASSORTMENT $ 1,659
7/6/2020 IN-KINDStarView Children and Family
ServicesPROMO-ASSORTMENT $ 4,643
7/10/2020 APPROVED COVID-19 RESPONSE The Garage Food Distribution $ 5,000
7/17/2020 APPROVED COVID-19 RESPONSE Food Finders Food Distribution $ 15,000
7/23/2020 APPROVED COVID-19 RESPONSE Crenshaw Family YMCA Food Distribution $ 7,500
7/25/2020 APPROVED COVID-19 RESPONSE Access Books Kick-Off $ 40,000
8/1/2020 APPROVED COVID-19 RESPONSESouth Antelop Valley Emergency
Serives (SAVES)Food Distribution $ 8,300
Page 3 of 4 18
Key
Approved Sponsorships
Recognized at grantee event, no sponsorship dollars spent
In-kind promotional item donations
Event Date Status Category Organization Event Amount
FY 2019-2020 Sponsorships
8/3/2020 APPROVEDConference/ Symposium/
Forum/Summit/ MeetingAchieveable Foundation
NHCW Legislative
Breakfast$ 5,000
8/3/2020 APPROVED COVID-19 RESPONSE 5Loaves 2Fish Food Distribution $ 15,000
8/4/2020 IN-KIND I have a Dream Foundation PROMO-ASSORTMENT $ 524
8/11/2020 APPROVED COVID-19 RESPONSE One Love Ministry Food Distribution $ 8,300
8/13/2020 IN-KIND Schools of Wheels PROMO-ASSORTMENT $ 75
8/14/2020 APPROVED COVID-19 RESPONSE MEND Food Distribution $ 20,000
8/17/2020 APPROVEDDinner/Gala/ Luncheon/
ReceptionLA Business Journal
Healthcare Leadership
Forum$ 8,000
8/19/2020 APPROVED COVID-19 RESPONSE God's Pantry Food Distribution $ 25,000
8/21/2020 APPROVED COVID-19 RESPONSEWeingart East Los Angeles
YMCAFood Distribution $ 5,000
8/27/2020 IN-KIND Health Right 360 PROMO-ASSORTMENT $ 440
8/29/2020 APPROVED COVID-19 RESPONSE Food Help-Downey Food Distribution $ 10,000
8/31/2020 IN-KIND LACCNP PROMO-BAGS $ 2,880
9/10/2020 APPROVED COVID-19 RESPONSE Seeds of Hope Food Distribution $ 20,000
9/12/2020 APPROVED COVID-19 RESPONSE FEAST Food Distribution $ 12,500
9/12/2020 APPROVED COVID-19 RESPONSE Weingart YMCA-South Vermont Food Distribution $ 5,000
9/12/2020 APPROVED COVID-19 RESPONSE AV Dream Center Food Distribution $ 8,300
Page 4 of 4 19
Board of Governors
MOTION SUMMARY
Date: February 22, 2021 Motion No. EXE 100.0321
Committee: Executive Chairperson: Hector De La Torre
Issue: Approve revision of Sponsorships policy COMM-006.
New Contract Amendment Sole Source RFP/RFQ was conducted in <<year>>
Background: L.A. Care staff requests approval to execute a policy revision to the attached COMM-
006 (Sponsorships). The revision provides for an update to the most current policy template, which includes the addition of a policy summary (sec. 3.0), and section 5.0- Monitoring and section 6.0- Reporting. An edit in section 4.2 to the internal administrative approval process is also included, to reflect recent updates to the review and approval process. The electronic approval process section was also updated so that Francisco Oaxaca, Chief of Communications and Community Relations, may approve updates to the policy on Compliance 360.
Member Impact: No anticipated member impact.
Budget Impact: No anticipated budget impact.
Motion: To approve revisions to Communications Policy COMM-006
(Sponsorships) as submitted.
20
1 of 5
SPONSORSHIPS COMM-006
DEPARTMENT COMMUNICATIONS AND COMMUNITY RELATIONS
Supersedes PolicyNumber(s)
DATES
Effective Date 11/6/2003 Review Date4/4/20191/25/2021
Next AnnualReview Date
4/2/20201/25/2022
Legal ReviewDate
Click here toenter a date.
CommitteeReview Date
4/4/2019
LINES OF BUSINESS
Cal MediConnect L.A. Care Covered L.A. Care Covered Direct MCLA
PASC-SEIU Plan Internal Operations
DELEGATED ENTITIES / EXTERNAL APPLICABILITY
PP – Mandated PP – Non-Mandated PPGs/IPAHospitals
Specialty Health Plans Directly Contracted Providers Ancillaries Other External Entities
ACCOUNTABILITY MATRIX
Enter departmenthereCommunications
Enter policy §§ hereirepolicy.
Legal Counsel 3.1, 4.2.2, 5.1
ATTACHMENTS
Enter all attachments here (e.g., desktop procedures/job aids, templates, reports, letters)
ELECTRONICALLY APPROVED BY THE FOLLOWING
OFFICER DIRECTOR
NAME John BaackesFrancisco Oaxaca Misty de Lamare
DEPARTMENT
ExecutiveAdministrationCommunications and
Community Relations
Communications and CommunityRelations
TITLEChief, Communications and Community
Relations Executive OfficerDirector, Communications
21
SPONSORSHIPS COMM-006
2 of 5
AUTHORITIES
Welfare and Institutions Code Sections 14087.9605 and 14087.967.
REFERENCES
603 Grants and Sponsorships
HISTORY
REVISION
DATEDESCRIPTION OF REVISIONS
02/01/00 Origination Date11/06/03 Revision Date04/04/19 Supersedes 603.2
11/6/2020Per request from Compliance: Updated template & font; added Legal as accountableparty; added Policy, Monitoring, and Reporting section. Updated Officer name.
1.0 OVERVIEW:
1.1 To establish clear and consistent guidelines for Sponsorships to assure L.A. CareHealth Plan's ("L.A. Care") compliance with applicable laws and regulations.
2.0 DEFINITIONS:
2.1 Sponsorship: In-kind monetary support for an organization, usually connected to aspecific event and/or purpose. Examples of Sponsorships include, but are notlimited to, health fairs, conferences, fundraising events, outreach efforts, orcontributions to health care programs.
2.2 Sponsorship Request: A request from an outside organization for monetary supportor in- kind contribution for a specific event or purpose. Examples of SponsorshipRequests include, but are not limited to, sponsoring conferences and events,fundraising, purchasing tables at events for health related programs.
22
SPONSORSHIPS COMM-006
3 of 5
2.3 Booth Fee: A request from an outside organization for a specific dollar amount thatwill cover the cost of L.A. Care participating in their event with a booth.
3.0 POLICY:
3.1 L.A. Care may approve Sponsorships for projects, events, or activities ororganizations if the expenditure of such funds furthers L.A. Care's legislativemandate of (1) establishing, implementing, maintaining and continuing the LocalInitiative for Medi-Cal managed care beneficiaries in Los Angeles County; (2)operating health plans for members of publicly funded health care programs,individuals employed by public agencies and businesses, and uninsured or indigentpatients; and/or (3) furthers L.A. Care’s mission and/or strategic vision. Allawarded Sponsorships must comply with the guidelines set forth in Policy 603-Grants and Sponsorships.
4.0 PROCEDURES:
4.1 L.A. Care's Communications and Community Relations Department(Communications) provides Sponsorship funds from the enterprise budget.4.1.1 A formal letter signed by a member of an organization soliciting
Sponsorship dollars or an in-kind donation must be submitted to theCommunications Department for processing.
4.1.2 The letter must include a description of the organization, along withinformation on how the funds will be used. The letter must include a list ofbenefits that L.A. Care will receive for awarding the sponsorship.
4.1.3 L.A. Care's Communications Department will do an analysis of theSponsorship Request using the Sponsorship Evaluation Criteria:4.1.3.1 Determine if the request is for Sponsorship of an event,
donation of promotional items, a Booth Fee, or a combinationof these items.
4.1.3.2 If the request is for a Booth Fee, Communications has anagreement in place with the Finance Department to ensure thatif appropriate, Communications can approve the event andcomplete the check request process for funding. Otherdepartments may work directly with Finance for the approvalof a Booth Fee.
4.1.3.3 If the request is for Sponsorship of an event, Communicationsthen assesses the name, date, time and location of the event, thetype of event, the activities planned and how the requestingorganization will use the funds provided.
4.1.3.4 Based on Policy 603, Communications determines whichsection of the policy the Sponsorship Request falls under.
4.1.3.5 Communications also determines how and from whom theSponsorship Request came to L.A. Care, if there is anyrelationship between the requesting organization and L.A.Care, and if the requesting organization is associated with anL.A. Care Board Member or employee.
23
SPONSORSHIPS COMM-006
4 of 5
4.1.3.6 Communications will identify the tax status of the requestingorganization, other endorsers, sponsors, participants, andanticipated attendees, potential staff required at the event,history of participation in previous events and the benefit ofL.A. Care's participation.
4.1.3.7 Based in findings from 3.1.3.1 through 3.1.3.6, andCommunications Department Sponsorship Guidelines,Communications makes a recommendation as to whether or notto proceed with Sponsorship, and at what level of funding L.A.Care should sponsor.
4.2 Once the evaluation criteria form is completed, the review and approval process isinitiated.it is forwarded to the Communications Director for review.4.2.1 The request is forwarded to the Communications Director or appointed
designee for review.The Communications Director or appointed designeereviews the recommendation Once the Communications Director orappointed designee approves and signs the request,, and if therecommendation is approved, it is forwarded to L.A. Care Legal Counselfor potential conflict of interest reviewreviewthe Senior Director ofCommunications and Community Relations (Senior Director) or appointeddesignee for approval and signature.
4.2.2 Once the Senior DirectorL.A. Care Legal Counsel has approved andsigned the request, it is forwarded to the CEO or appointed designee forfinal review. The current appointed designee is L.A. Care LegalCounselthe Chief of Communications and Community Relations orappointed designee for review..
4.2.3 Once L.A. Care Legal Counselthe Chief of Communications andCommunity Relations or appointed designee has approved and signed therequest, the it is forwarded to the CEO or appointed designee for approvaland signature. All Sponsorship funding amounts are is final, unless he/she,or the CEO makes a decision to decrease or increase the recommendedfunding levels.funding amount.
4.3 Communications then coordinates logistics for the event, ensuring that all detailsof the Sponsorship Request are adhered to and that adequate staffing/attendancewill be present to represent L.A. Care.
4.4 Communications will receive a copy of the original proposal and completedevaluation form and will log the Sponsorship information into a database.
5.0 MONITORING:
5.1 Every Sponsorship request will be reviewed by the Communications Director, theChief of Communications and Community Relations, and L.A. Care Legal Counselto ensure adherence to this policy, before final approval and disbursement ofSponsorship funds.5.1
6.0 REPORTING:
24
SPONSORSHIPS COMM-006
5 of 5
6.1 Reporting requirements shall be as follows:
6.1.1 Monthly Sponsorship reports, which include funding recipient, amount,date, and event name, shall be presented to the Board.
6.1.2 Annual Sponsorship reports, which include funding recipient, amount,date, and event name, shall be presented to the Board within one hundredtwenty (120) days of the end of each fiscal year.
6.1
25
Board of Governors
MOTION SUMMARY
Date: February 22, 2021
Motion No. EXE A.0221
Committee: Executive Chairperson: Hector De La Torre
Issue: L.A. Care Cash Balance Plan Restatement
Background: The L.A. Care Cash Balance Plan (the “Plan”), a tax-qualified supplemental
retirement plan for senior executives, was established on January 1, 2006, was most recently restated effective January 1, 2017, and has since been amended. The Plan most recently received a favorable determination letter from the Internal Revenue Service regarding the Plan’s tax-qualified status, which is conditioned on restating the Plan to incorporate these Plan amendments. The proposed restated Plan, a copy of which is attached, would also amend the Plan to increase the age at which participants must generally begin receiving distributions from the Plan from age 70½ to age 72 in accordance with the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”).
Member Impact: Members benefit from a plan that is staffed with talented management staff.
To hire and retain highly qualified employees to administer the health plan, L.A. Care must maintain an attractive compensation program.
Budget Impact: None. All of the target allocations included in the attached restatement have
been previously approved by either the Board or the Executive Committee or, pursuant to the authority granted by the Executive Committee to do so, by the Chief Executive Officer.
Motion: 1) To approve the adoption of the restated L.A. Care Cash Balance Plan, in the form attached hereto, to accomplish the aforementioned purposes, effective as of the dates set forth in the restatement; and,
2) To authorize and direct L.A. Care’s General Counsel to execute the restated Plan.
26
L.A. CARE CASH BALANCE PLAN
(As Restated Effective January 1, 20172020)
27
TABLE OF CONTENTS
Page
-i-
ARTICLE 1. INTRODUCTION ................................................................................................. 1
1.1 Purpose ................................................................................................................... 1
1.2 Qualification .......................................................................................................... 1
1.3 Definitions.............................................................................................................. 1
ARTICLE 2. DEFINITIONS ....................................................................................................... 1
2.1 Accrued Benefit ..................................................................................................... 1
2.2 Accumulated Contributions Account ..................................................................... 1
2.3 Actuarial Equivalent .............................................................................................. 1
2.4 Affiliated Employer ............................................................................................... 1
2.5 Annuity Starting Date ............................................................................................ 2
2.6 Applicable Interest Rate ......................................................................................... 2
2.7 Applicable Mortality Table .................................................................................... 2
2.8 Authorized Leave of Absence ................................................................................ 2
2.9 Beneficiary ............................................................................................................. 2
2.10 Benefit Service ....................................................................................................... 2
2.11 Break-in-Service .................................................................................................... 3
2.12 Board ...................................................................................................................... 3
2.13 Code ....................................................................................................................... 3
2.14 Compensation ........................................................................................................ 3
2.15 Computation Period ............................................................................................... 4
2.16 Disabled or Disability ............................................................................................ 4
2.17 Domestic Partner .................................................................................................... 4
2.18 Effective Date ........................................................................................................ 4
2.19 Eligible Employee .................................................................................................. 4
2.20 Employee ............................................................................................................... 5
2.21 Employer ................................................................................................................ 5
2.22 Employer Allocation .............................................................................................. 5
2.23 Employment ........................................................................................................... 5
2.24 Employment Date .................................................................................................. 5
2.25 Entry Date .............................................................................................................. 5
2.26 Executive Committee ............................................................................................. 5
28
TABLE OF CONTENTS
Page
-ii-
2.27 Hour of Service ...................................................................................................... 5
2.28 Interest.................................................................................................................... 7
2.29 Military Leave ........................................................................................................ 7
2.30 Normal Retirement Age ......................................................................................... 7
2.31 Normal Retirement Date ........................................................................................ 7
2.32 Participant .............................................................................................................. 7
2.33 Plan ........................................................................................................................ 7
2.34 Plan Administrator ................................................................................................. 7
2.35 Plan Year ................................................................................................................ 7
2.36 Qualified Domestic Relations Order ...................................................................... 7
2.37 Rate of Return ........................................................................................................ 7
2.38 Required Beginning Date ....................................................................................... 8
2.39 Retirement Committee ........................................................................................... 8
2.40 Spouse .................................................................................................................... 8
2.41 Target Allocation ................................................................................................... 8
2.42 Termination Date ................................................................................................... 8
2.43 Trust Agreement .................................................................................................... 8
2.44 Trust Fund or Fund ................................................................................................ 8
2.45 Trustee.................................................................................................................... 8
2.46 Vesting Service ...................................................................................................... 8
ARTICLE 3. PARTICIPATION AND SERVICE .................................................................... 10
3.1 Participation ......................................................................................................... 10
3.2 Rehired Employees .............................................................................................. 10
3.3 Termination of Participation ................................................................................ 10
ARTICLE 4. VESTING ............................................................................................................ 10
ARTICLE 5. ELIGIBILITY FOR RETIREMENT BENEFIT ................................................. 10
5.1 Normal Retirement............................................................................................... 10
5.2 Vested Terminations ............................................................................................ 11
5.3 Disability Retirement ........................................................................................... 11
5.4 Other Circumstances ............................................................................................ 11
5.5 Reemployment and Suspension of Benefits ........................................................ 11
29
TABLE OF CONTENTS
Page
-iii-
ARTICLE 6. AMOUNT OF RETIREMENT INCOME ........................................................... 12
6.1 Accrued Benefit ................................................................................................... 12
6.2 Accumulated Contributions Account ................................................................... 12
ARTICLE 7. FORM OF PAYMENT OF RETIREMENT INCOME....................................... 14
7.1 Available Forms of Retirement Income ............................................................... 14
7.2 Election of a Form of Benefit .............................................................................. 14
7.3 Spousal or Domestic Partner’s Consent ............................................................... 15
7.4 Information on Distribution Options ................................................................... 15
7.5 Death of Spouse or Domestic Partner or Dissolution of Marriage or
Domestic Partnership ........................................................................................... 16
7.6 Required Distributions ......................................................................................... 16
7.7 Involuntary Lump Sum Cash-Outs ...................................................................... 16
ARTICLE 8. PRERETIREMENT DEATH BENEFITS ........................................................... 17
8.1 Beneficiary’s Benefit Eligibility .......................................................................... 17
8.2 Payment of Death Benefit .................................................................................... 17
8.3 Form of Death Benefit ......................................................................................... 17
8.4 Amount of Death Benefit ..................................................................................... 18
8.5 Designation of Beneficiary .................................................................................. 18
8.6 Spousal or Domestic Partner Consent.................................................................. 19
8.7 Involuntary Lump Sum Cash-Outs ...................................................................... 19
8.8 Death During Military Leave ............................................................................... 19
ARTICLE 9. ADMINISTRATION OF THE PLAN ................................................................ 20
9.1 Plan Sponsor ........................................................................................................ 20
9.2 Plan Administrator ............................................................................................... 20
9.3 Management of Plan Assets ................................................................................. 20
9.4 Trustees and Investment Managers ...................................................................... 21
9.5 Delegation of Responsibilities ............................................................................. 21
9.6 Basis of Payments From the Plan ........................................................................ 21
ARTICLE 10. FUNDING OF THE PLAN ................................................................................. 21
10.1 Funding Policy and Method ................................................................................. 21
10.2 Basis of Payments to the Plan .............................................................................. 21
10.3 Return of Employer Contributions....................................................................... 22
30
TABLE OF CONTENTS
Page
-iv-
ARTICLE 11. BENEFITS CLAIM ............................................................................................. 22
11.1 Claim of Benefits ................................................................................................. 22
11.2 Appeal Procedure ................................................................................................. 22
ARTICLE 12. AMENDMENT AND TERMINATION OF THE PLAN ................................... 23
12.1 Plan Termination, Cessation of Accruals, and Additional Amendments ............ 23
12.2 Rules Governing Termination of the Plan ........................................................... 23
12.3 Partial Termination .............................................................................................. 24
ARTICLE 13. GENERAL PROVISIONS .................................................................................. 24
13.1 Subsequent Changes ............................................................................................ 24
13.2 Plan Mergers ........................................................................................................ 24
13.3 No Assignment of Property Rights ...................................................................... 25
13.4 Qualified Domestic Relations Order .................................................................... 25
13.5 Incompetence ....................................................................................................... 26
13.6 No Employment Rights........................................................................................ 26
13.7 Proof ..................................................................................................................... 26
13.8 Choice of Law ...................................................................................................... 26
13.9 Direct Rollover..................................................................................................... 26
ARTICLE 14. LIMITATIONS ON BENEFITS ......................................................................... 27
14.1 Limitation on Retirement Income ........................................................................ 27
14.2 Alternate Limitation for Retirement Income up to $10,000 ................................ 28
14.3 Reduced Limitations for Participants With Fewer Than 10 Years of
Employment ......................................................................................................... 28
14.4 Reduced Limitation for Participants With Fewer Than 10 Years of Benefit
Service.................................................................................................................. 28
14.5 Adjusted Limitation for Benefits Commencing Before Age 62 .......................... 28
14.6 Adjusted Limitation for Benefits Commencing After Age 65 ............................. 29
14.7 Affiliated Employer ............................................................................................. 29
14.8 Annual Benefit ..................................................................................................... 29
ARTICLE 15. EXECUTION ....................................................................................................... 30
APPENDIX A ACTUARIAL EQUIVALENCE.......................................................................... 1
APPENDIX B ELIGIBLE EMPLOYEES, ENTRY DATE, TARGET ALLOCATIONS,
AND VESTING ..................................................................................................... 1
31
TABLE OF CONTENTS
Page
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APPENDIX C MINIMUM DISTRIBUTION REQUIREMENTS .............................................. 1
APPENDIX D PUBLIC EMPLOYEES' PENSION REFORM ACT .......................................... 1
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L.A. CARE CASH BALANCE PLAN
(As Restated Effective January 1, 20172020)
ARTICLE 1. INTRODUCTION.
1.1 Purpose.
L.A. Care Health Plan (the "Employer") established the L.A. Care Cash Balance
Plan (the "Plan"), effective January 1, 2006, in order to provide retirement
benefits to Eligible Employees. The Plan is hereby restated in its entirety,
effective January 1, 20172020 (except as otherwise stated herein).
1.2 Qualification.
The Plan and Trust Agreement are intended to meet the requirements of sections
401(a) and 501(a) of the Code.
1.3 Definitions.
Unless otherwise clearly indicated by the context, the capitalized terms used
herein shall have the meanings set forth in Article 2.
ARTICLE 2. DEFINITIONS.
2.1 “Accrued Benefit” shall mean the benefit earned by a Participant under this Plan
and described in Section 6.1.
2.2 “Accumulated Contributions Account” shall mean the hypothetical account
established for each Participant to which the allocations, credits and debits
described in Section 6.2 are made.
2.3 “Actuarial Equivalent” shall mean a benefit of equivalent actuarial value
determined in accordance with the factors set forth in Appendix A or, if
applicable, as otherwise provided by the Plan.
2.4 “Affiliated Employer” shall mean any corporation which is a member of a
controlled group of corporations (as defined in section 414(b) of the Code) which
includes the Employer; any trade or business (whether or not incorporated) which
is under common control (as defined in section 414(c) of the Code) with the
Employer; any organization (whether or not incorporated) which is a member of
an affiliated service group (as defined in section 414(m) of the Code) which
includes the Employer; and any other entity required to be aggregated with the
Employer pursuant to Regulations under section 414(o).
An entity shall be considered an Affiliated Employer only with respect to periods
during which it is part of the group described in this Section 2.4.
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2.5 “Annuity Starting Date” shall mean the first day of the first period for which a
pension is payable as an annuity or, in the case of a pension not payable in the
form of an annuity, the first day on which all events have occurred which entitle
the Participant to such pension.
If a Participant accrues Plan benefits after his or her Annuity Starting Date, the
Participant shall have separate and distinct Annuity Starting Date(s) with respect
to those additional Plan benefits.
2.6 “Applicable Interest Rate” shall mean the “applicable interest rate” defined in
section 417(e)(3)(A)(ii)(II) of the Code immediately prior to the amendment of
that Code section by the Pension Protection Act of 2006, and shall be the annual
rate of interest on 30-year Treasury securities (as published by the Board of
Governors of the Federal Reserve System), as of the third month preceding the
Plan Year containing the Annuity Starting Date.
2.7 “Applicable Mortality Table” shall mean the “applicable mortality table” defined
in section 417(e)(3)(B) of the Code in effect on the Participant’s Annuity Starting
Date.
2.8 “Authorized Leave of Absence” shall mean Military Leave and any other absence
from active employment, with or without pay, that is authorized in writing by the
Employer in accordance with the Employer’s prevailing and nondiscriminatory
practices including leave authorized on account of Disability; provided that the
affected Employee conforms to all of the conditions of the leave of absence,
including a return to employment within the time specified therein.
2.9 “Beneficiary” shall mean the Spouse of a married Participant, or the Domestic
Partner of a Participant in a domestic partnership, or in the event that the
Participant is not married or in a domestic partnership, or the Participant’s Spouse
or Domestic Partner has properly executed a Spousal or Domestic Partner's
Consent in accordance with Section 8.6, the person designated by the Participant
in accordance with Section 8.5 to receive any benefit payable under the Plan after
the Participant’s death.
2.10 “Benefit Service” shall mean the period of service used to determine the amount
of Plan benefit under Article 6 or any other provision of the Plan.
One year of Benefit Service shall be granted for each Computation Period during
which an Eligible Employee earns 2,280 Hours of Service.
If, during a Computation Period, an Eligible Employee earns less than 2,280
Hours of Service, a partial year of Benefit Service shall be granted. This partial
year of Benefit Service shall be determined as the fraction calculated by dividing
the number of Hours of Service earned by 2,280 Hours of Service.
For purposes of this Section 2.10, Hours of Service earned prior to the Effective
34
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Date are disregarded except as provided in the applicable Schedule attached to
Appendix B. In addition, Hours of Service earned while not an Eligible
Employee are disregarded.
In the case of a Participant whose Accrued Benefit is not vested and who
terminates employment, incurs a Break-in-Service, and qualifies again as a
Participant, if the number of consecutive Breaks-in-Service equals or exceeds the
greater of five (5) and the number of years of Vesting Service earned prior to
termination of employment, the Participant’s Benefit Service prior to such Break-
in-Service shall not be taken into account in determining Benefit Service.
2.11 “Break-in-Service” shall mean a Computation Period in which the Participant has
not completed more than 500 Hours of Service.
2.12 “Board” shall mean the Board of Governors of the Employer.
2.13 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.
2.14 “Compensation” shall mean with respect to any Participant such Participant’s
base salary for personal services actually rendered in the course of employment
with the Employer maintaining the Plan, to the extent that the amounts are
includible in gross income, for the Computation Period.
Compensation shall not include (1) contributions made by the Employer to a plan
under section 457(f) of the Code to the extent that the contributions are not
includible in the gross income of the Participant for the taxable year in which
contributed; (2) any distributions from a plan of deferred compensation; and
(3) contributions made by the Employer (whether or not under a salary reduction
agreement) towards the purchase of any annuity contract described in Code
section 403(b) (whether or not the contributions are actually excludable from the
gross income of the Employee).
For purposes of this Section, the determination of Compensation shall be made by
including amounts which are contributed by the Employer pursuant to a salary
reduction agreement and which are not includible in the gross income of the
Participant under Code sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b),
and Employee contributions described in Code section 414(h)(2) that are treated
as Employer contributions, but only to the extent that such Compensation would
otherwise be includible as base salary. Compensation shall also include elective
amounts that are not includible in the gross income of the Employee under Code
section 132(f)(4), but only to the extent that such Compensation would otherwise
be includible as base salary.
For a Participant’s initial year of participation, Compensation shall be recognized
beginning only as of such Participant’s Entry Date.
The annual Compensation of each Participant shall not exceed $200,000, as
35
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adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of
the Code.
The cost-of-living adjustment in effect for a calendar year applies to annual
Compensation for the Computation Period that begins with or within such
calendar year.
2.15 “Computation Period” shall mean the twelve-month period beginning on the
Participant’s Entry Date or each annual anniversary thereof, unless otherwise
provided in the applicable Schedule attached to Appendix B.
2.16 “Disabled” or “Disability” shall mean a physical or mental disablement on
account of which such Participant is eligible for disability benefits under the
Employer’s long-term disability plan. Eligibility shall be considered only after
the completion of the required waiting period, if any, provided under the
Employer’s long-term disability plan.
2.17 “Domestic Partner” shall mean an individual with respect to whom both of the
following requirements are met:
(a) The domestic partnership of such individual and a Participant is registered
with the state of California, and a copy of this valid registration is filed
with the Plan Administrator.
(b) On the date of and at all times after the requirement of subparagraph (a) of
this Section is met, the Participant and the individual designated as his or
her Domestic Partner satisfy all of the following requirements:
(i) Each is the other’s sole domestic partner in a long-term committed
relationship and intends to remain so indefinitely.
(ii) Neither is legally married, and they are not related by blood to a
degree of closeness that would prohibit legal marriage in the State
of California.
(iii) Each is age 18 or older and has the ability to consent to the
relationship.
(iv) They reside together and intend to reside together indefinitely.
(v) They are financially interdependent.
2.18 “Effective Date” shall mean January 1, 2006.
2.19 “Eligible Employee” shall mean an Employee who is designated by the Executive
Committee as an Eligible Employee and who is listed on a Schedule attached to
Appendix B.
36
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If, during any period, the Employer has not regarded an individual as an
Employee and, for that reason, has not withheld employment taxes with respect to
that individual, then that individual shall not be an Eligible Employee for that
period, even in the event that the individual is determined, retroactively, to have
been an Employee during all or any portion of that period. An individual’s status
as an Eligible Employee shall be determined in its sole discretion by the
Employer and such determination shall be conclusive and binding on all persons.
The term “Eligible Employee” shall include individuals who (1) first become
Employees before January 1, 2013, and (2) are classified by the Employer as
Directors or Senior Directors (or the equivalent salary grade).
In order to comply with the California Public Employees' Pension Reform Act of
2013 (“PEPRA”), the term “Eligible Employee” shall not include any individual
who first becomes an Employee after December 31, 2012.
2.20 “Employee” shall mean an individual who is employed by the Employer under a
common-law employer-employee relationship.
2.21 “Employer” shall mean L.A. Care Health Plan. The Employer is a local
government agency.
2.22 “Employer Allocation” shall mean the annual bookkeeping credit, other than
interest, to the Participant’s Accumulated Contributions Account as defined in
Section 6.2.
2.23 “Employment” shall mean the period or periods during which an individual is an
Employee.
2.24 “Employment Date” shall mean the date an Employee first performs an Hour of
Service.
2.25 “Entry Date” shall mean the date an Eligible Employee begins Participation in
this Plan.
2.26 “Executive Committee” shall mean the Executive Committee of the Board.
2.27 “Hour of Service” shall mean the number of hours credited to an Employee under
the following rules:
(a) Paid Duty.
An Hour of Service shall be credited for each hour for which the
Employee is paid, or entitled to payment, for the performance of duties for
the Employer or an Affiliated Employer. These Hours of Service shall be
credited to the Employee for the Computation Period(s) in which the
duties are performed.
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(b) Paid Nonduty.
An Hour of Service shall be credited for each hour for which the
Employee is paid, or entitled to payment, by the Employer or an Affiliated
Employer on account of a period of time during which no duties are
performed (irrespective of whether the employment relationship has
terminated) due to vacation, holiday, illness, incapacity (including
Disability), layoff, jury duty, military duty or Authorized Leave of
Absence; provided, however, that:
(i) no more than 501 Hours of Service shall be credited on account of
a single continuous period during which the Employee performs no
duties (whether or not such period occurs in a single computation
period);
(ii) no Hours of Service shall be credited on account of payments
made under a plan maintained solely for the purpose of complying
with applicable workers' compensation, unemployment
compensation or disability insurance laws;
(iii) no Hours of Service shall be credited on account of payments
which solely reimburse the Employee for medical or medically
related expenses incurred by the Employee; and
(iv) payments shall be deemed made by or due from the Employer
whether made directly or indirectly from a trust fund or an insurer
to which the Employer contributes or pays premiums.
These hours shall be credited to the Employee for the Computation Period
for which payment is made or, if the payment is not computed by
reference to units of time, the hours shall be credited to the first
Computation Period in which the event for which any part of the payment
is made occurred.
(c) Back Pay.
An Hour of Service shall be credited for each hour for which back pay,
irrespective of mitigation of damages, has been either awarded or agreed
to by the Employer or an Affiliated Employer. The same Hours of Service
credited under Sections 2.27(a) and 2.27(b) shall not be credited under this
Section 2.27(c). The crediting of Hours of Service under this Section
2.27(c) for period and payments described in Section 2.27(b) shall be
subject to all the limitations of that paragraph. These Hours of Service
shall be credited to the Employee for the computation period or periods to
which the award or agreement pertains rather than the computation period
in which the award, agreement, or payment is made.
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Notwithstanding anything to the contrary in this Section, one hundred ninety
(190) Hours of Service shall be credited to each Eligible Employee for each
calendar month in which the Eligible Employee is directly or indirectly entitled to
payment for one (1) or more Hours of Service.
Notwithstanding any provision of this Plan to the contrary, benefits and service
credit with respect to Military Leave will be provided in accordance with section
414(u) of the Code.
2.28 “Interest” shall mean the interest credited to the Participant’s Accumulated
Contributions Account pursuant to Section 6.2(b).
2.29 “Military Leave” shall mean a period during which an Employee serves in the
armed forces of the United States under circumstances in which Federal law
protects his or her retirement benefits and rights if he or she returns to
employment as an Employee within the period prescribed by Federal law.
2.30 “Normal Retirement Age” shall mean age 65.
2.31 “Normal Retirement Date” shall mean the first day of the month immediately
following the attainment of Normal Retirement Age.
2.32 “Participant” shall mean any Employee who becomes a Participant in the Plan in
accordance with Article 3 and who has not ceased to be a Participant as provided
in Article 3.
2.33 “Plan” shall mean the L.A. Care Cash Balance Plan, as amended from time to
time.
2.34 “Plan Administrator” shall mean the person or person(s) designated by the
Employer to have the discretionary authority to control and manage the operation
and administration of the Plan.
2.35 “Plan Year” shall mean the period that begins on the Effective Date and ends on
October 1, 2006, and thereafter each 12-month period beginning on October 1st.
2.36 “Qualified Domestic Relations Order” shall mean a domestic relations order
which the Plan Administrator has determined satisfies the requirements of section
414(p) of the Code.
2.37 “Rate of Return” shall mean, for a particular Computation Period, the ratio of
investment earnings on Plan assets for that Computation Period to the adjusted
value of Plan assets during that Computation Period. The adjusted value of Plan
assets shall be determined as the value of Plan assets at the beginning of the
Computation Period adjusted for Plan contributions and distributions made during
that Computation Period, with the adjustment based on the period of time during
which these contributions and distributions are made. The Rate of Return shall be
determined by the Plan Administrator at its sole discretion.
39
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2.38 “Required Beginning Date” shall mean the April 1 of the calendar year following
of the calendar year in which the Participant attains age 70½. Effective for
distributions required to be made after December 31, 2019, with respect to
Participants who attain age 70½ after that date, age “72” is substituted for age
“70½” in the preceding sentence.
2.39 “Retirement Committee” shall mean the L.A. Care Health Plan Retirement
Committee.
2.40 “Spouse” means the individual to whom a Participant is lawfully married,
including an individual of the same-sex with whom the Participant has validly
entered into a marriage in a state, the District of Columbia, a United States
territory or a foreign jurisdiction whose laws authorize the marriage of two
individuals of the same sex, even if the individuals are domiciled in a state that
does not recognize the validity of same-sex marriage. Spouse excludes an
individual with whom a Participant has entered into a registered domestic
partnership, civil union, or other similar formal relationship, whether opposite-sex
or same-sex, recognized under the law of another jurisdiction that is not
denominated as a marriage under the laws of that jurisdiction.
2.41 “Target Allocation” means, for the Participant’s Computation Period, the dollar
amount listed for the Participant in the applicable schedule attached to Appendix
B.
2.42 “Termination Date” shall mean the date on which the Participant ceases to be an
Employee, or, in the case of a Participant who continues to be employed as an
Employee after his or her Normal Retirement Date, such Participant shall be
deemed to have a Termination Date on the first day of any calendar month in
which the Participant has 40 or fewer Hours of Service.
2.43 “Trust Agreement” shall mean the trust agreement or agreements entered into
between the Employer and a Trustee pursuant to Article 9.
2.44 “Trust Fund” or “Fund” shall mean the cash and other assets held and
administered by the Trustee in accordance with the provisions of the Trust
Agreement and the Plan.
2.45 “Trustee” shall mean the Trustee(s) appointed and acting in accordance with
Article 9.
2.46 “Vesting Service” shall mean the period of service used to determine the
Participant’s vested interest under Article 4, Section 5.2 and the applicable
Schedule attached to Appendix B, or any other provision of the Plan. Except as
otherwise provided below or in the applicable Schedule attached to Appendix B, a
Participant’s period of Vesting Service shall begin on the Participant’s Entry
Date, and shall end on the Participant’s Termination Date. In determining an
40
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Eligible Employee’s years of Vesting Service, the following rules shall be
applied:
(a) Aggregation Method.
In the case of a reemployed Employee, all of his or her separate periods of
Vesting Service shall be aggregated and treated as a single continuous
period of Vesting Service.
(b) Authorized Leaves of Absence.
An individual who is on an Authorized Leave of Absence shall continue to
be treated as an Employee for purposes of Vesting Service.
(c) Breaks in Service.
In the case of an Employee who incurs a break in Employment less than
12 months in duration, the period of such break shall be treated as Vesting
Service.
In the case of a Participant whose Accrued Benefit is not vested and who
terminates Employment, incurs a Break-in-Service, and qualifies again as
a Participant, if the number of consecutive Breaks-in-Service equals or
exceeds the greater of five (5) and the number of years of Vesting Service
earned prior to termination of employment, the Participant’s Vesting
Service prior to such Break-in-Service shall not be taken into account in
determining Vesting Service.
(d) Service Records; Additional Credit.
An Employee’s period of Vesting Service shall be determined by the
Employer on the basis of employment records or on such other reasonable
basis as it may adopt.
(e) Service Counting.
Vesting Service shall be determined based on completed calendar months.
Where separate periods of Vesting Service are aggregated, partial calendar
months shall be aggregated and treated as a two completed calendar
months if the aggregated period is 60 days or more, and as one completed
calendar month if the aggregated period is 30 days but less than 60 days.
41
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ARTICLE 3. PARTICIPATION AND SERVICE.
3.1 Participation.
An Eligible Employee shall become a Participant on the first Entry Date
coincident with or next following the latest of the following:
(a) The Employee’s Employment Date;
(b) The date the Employee first becomes an Eligible Employee;
(c) The Effective Date.
3.2 Rehired Employees.
A former Participant who terminates service with the Employer and is later
rehired as an Employee shall resume participation in the Plan as of the date he or
she is again designated as an Eligible Employee by the Executive Committee.
3.3 Termination of Participation.
A Participant’s participation in the Plan shall terminate when his or her entire
Plan benefit has been distributed or on the date of his or her death, whichever
occurs first. In the case of a Participant who is not entitled to a Plan benefit,
participation in the Plan shall terminate when the Participant ceases to be an
Employee.
ARTICLE 4. VESTING.
A Participant shall vest in his benefit under the Plan in accordance with the provisions of
Sections 2.46, 5.2, and 8.1(b), and the provisions of the applicable Schedule attached to
Appendix B.
ARTICLE 5. ELIGIBILITY FOR RETIREMENT BENEFIT.
5.1 Normal Retirement.
A Participant shall be entitled to his or her Accrued Benefit under Article 6 at any
time on or after attainment of Normal Retirement Age, but only if the Participant
attains Normal Retirement Age as an Employee.
The Participant’s Annuity Starting Date is his or her Required Beginning Date.
However, the Participant may request an earlier Annuity Starting Date, which
may be the first day of any month following the Participant’s Termination Date.
A Participant’s request for an earlier Annuity Starting Date shall be made in
writing on the prescribed form and filed with the Plan Administrator in
accordance with its written procedures.
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5.2 Vested Terminations.
A Participant shall be entitled to receive the vested portion of his or her Accrued
Benefit under Article 6 if his or her Termination Date is before attainment of
Normal Retirement Age in accordance with Appendix B.
A vested Participant’s Annuity Starting Date shall be his or her Normal
Retirement Date. However, the Participant may request an earlier Annuity
Starting Date, which may be the first day of any month following his or her
Termination Date. A Participant’s request for an earlier Annuity Starting Date
shall be made in writing on the prescribed form and filed with the Plan
Administrator in accordance with its written procedures.
5.3 Disability Retirement.
A Participant who incurs a Disability as an Employee shall be fully vested in his
or her Accrued Benefit, and shall be eligible to commence payment of such
Accrued Benefit. A Disabled Participant’s Annuity Starting Date shall be his or
her Required Beginning Date or the date he or she incurs a Disability (the
“Disability Date”) whichever is later. However, the Participant instead may
request an earlier Annuity Starting Date, which may be the first day of any month
on or following his or her Disability Date. A Participant’s request for an earlier
Annuity Starting Date shall be made in writing on the prescribed form and filed
with the Employer in accordance with its written procedures.
5.4 Other Circumstances.
No pension benefit shall be payable under this Plan except as provided in Sections
5.1 through 5.3 and Article 8.
5.5 Reemployment and Suspension of Benefits.
If any Participant who has been receiving payment of his or her Accrued Benefit
as an annuity is reemployed by the Employer before the Participant’s Normal
Retirement Date, then the payment of such pension shall be discontinued
immediately, but only for the period preceding the Participant’s Normal
Retirement Date. When the Participant again becomes entitled to commence
payment of his or her Accrued Benefit, the amount of such payments shall (a) be
determined anew under the Plan as then in effect and (b) be reduced to take into
account the Actuarial Equivalent of the Accrued Benefit that the Participant
received following the termination of his or her prior employment and before his
or her Normal Retirement Date.
If reemployment occurs on or after the Participant’s Normal Retirement Date,
payment of the Participant’s Accrued Benefit shall not be discontinued.
If reemployment occurs on or after the date on which the Participant’s Accrued
Benefit has commenced distribution, either as an annuity or in the form of a
43
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single-sum distribution, the Participant’s Accrued Benefit shall be reduced by the
Actuarial Equivalent of the benefit distributions received by the Participant as
provided for in Section 6.2(c).
ARTICLE 6. AMOUNT OF RETIREMENT INCOME.
6.1 Accrued Benefit.
Under the Plan, a Participant’s Accrued Benefit as of a determination date shall be
the single-life annuity, (as defined in 7.1.(a)) commencing on the later of the
Participant’s Annuity Starting Date and the Participant’s Normal Retirement Date,
that is the Actuarial Equivalent of the Participant’s Accumulated Contributions
Account described below in Section 6.2 as of the determination date.
6.2 Accumulated Contributions Account.
A Participant’s Accumulated Contributions Account consists of the sum of the
following bookkeeping credits to the account of the Participant: his or her
Employer Allocations; and “Interest” credited on such Employer Allocations.
The Participant’s Accumulated Contributions Account represents the benefit
promised by the Plan, and is not an actual account to which Plan assets and
investment income are allocated.
(a) Employer Allocation.
For each Computation Period beginning on and after the Effective Date,
the Participant’s Employer Allocation is the lesser of:
(i) the Target Allocation multiplied by the Participant’s Benefit
Service earned during the Computation Period; and
(ii) the Maximum Accrual Margin under Section 6.2(e).
For all Computation Periods beginning prior to the Participant’s Entry
Date, the Participant’s Employer Allocation is zero.
The Employer Allocation shall be credited to the Participant’s
Accumulated Contributions Account as of the last day of the Computation
Period; provided, however, that if a Participant terminates service with the
Employer prior to the last day of the Computation Period, the Employer
Allocation shall be credited to the Participant’s Accumulated
Contributions Account as of the date of termination.
(b) Interest.
For each Computation Period, a Participant's Accumulated Contributions
Account as of the last day of such Computation Period shall be credited
44
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with Interest. Interest for a Computation Period shall equal the Rate of
Return determined on the Plan's assets for that Computation Period.
However, in no event shall Interest be credited for any Computation
Period be less than zero; and in no event shall Interest credited for a
Computation Period, when expressed as a percentage of the Plan's assets,
exceed the interest rate on long-term investment grade corporate bonds.
For each Computation Period, a Participant’s Accumulated Contributions
Account as of the last day of such Computation Period shall be credited
with Interest; provided, however, that, effective October 18, 2007, if a
Participant terminates service with the Employer prior to the last day of
the Computation Period, the Participant’s Accumulated Contributions
Account shall be credited with Interest as of the date of termination.
(c) Distributions.
On the Participant’s Annuity Starting Date, a Participant’s Accumulated
Contributions Account shall be reduced by the portion of the Participant’s
Accumulated Contributions Account that is distributed. On and after the
Annuity Starting Date, no further Interest shall accrue on the portion of the
Participant’s Accumulated Contributions that is distributed.
(d) Prior to Effective Date.
Prior to the Participant’s Entry Date, a Participant’s Accumulated
Contributions Account is zero.
(e) Maximum Accrual Margin.
The Maximum Accrual Margin for a Plan Year is the excess, if any, of the
limit under Section 14.1 over the Participant’s Annual Benefit under
Section 14.8 as of the end of such Plan Year, where the annual retirement
benefit under Section 14.8(b) is determined without regard to the
Employer Allocation for such Plan Year. This excess shall be expressed
as the Actuarial Equivalent single-sum payment (as defined in 7.1.(c))
payable at the end of such Plan Year, where Actuarial Equivalency shall
be determined under Appendix A.
(f) Reemployment.
In the case of a Participant whose Accrued Benefit is not 100% vested and
who terminates Employment, incurs a Break-in-Service, and qualifies
again as a Participant, if the number of consecutive Breaks-in-Service
equals or exceeds the greater of five (5) and the number of years of
Vesting Service earned prior to termination of employment, the non-
vested portion of the Participant’s Accumulated Contributions Account
prior to such Break-in-Service shall not be taken into account in
determining the Participant’s Accumulated Contributions Account.
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ARTICLE 7. FORM OF PAYMENT OF RETIREMENT INCOME.
7.1 Available Forms of Retirement Income.
Subject to Sections 7.2 and 7.7, a Participant’s vested Accrued Benefit shall be
payable in one of the payment forms listed below. The benefit amounts described
in Subsections (a) through (c) commencing on the Participant’s Annuity Starting
Date shall be the Actuarial Equivalent of the Participant’s vested Accrued
Benefit:
(a) Single-Life Annuity.
A “Single-Life Annuity” provides monthly payments for the Participant’s
life only.
(b) 50% Joint-and-Survivor Annuity.
The “50% Joint-and-Survivor Annuity” provides monthly payments for
the Participant’s life and, after the Participant’s death, provides monthly
payments to the Participant’s surviving Spouse or Domestic Partner (if
any) equal to 50 percent of the Participant’s monthly payment amount.
(c) Single-Sum Payment.
The “Single-Sum Payment” provides a single lump-sum payment in cash
equal to the Participant’s Accumulated Contributions Account.
7.2 Election of a Form of Benefit.
A Participant shall elect a form of benefit by filing the prescribed forms with the
Plan Administrator during the Election Period consisting of the 90 consecutive
days beginning on the date the Participant receives the prescribed forms, provided
that the Participant’s Annuity Starting Date is on or after the date the Participant
receives the prescribed forms, and that the Participant’s Annuity Starting Date is
not more than 90 days after the date on which the Participant receives the
prescribed forms.
Any such election may be revoked by filing the prescribed forms with the Plan
Administrator at any time during the Election Period. Any such election or
revocation will be treated as a new application for benefits and may result in a
delay in the payment of benefits.
If the Participant fails to make an effective election of a form of benefit during the
Election Period or, having revoked a prior election, does not make another
election during the Election Period, then his or her benefit shall be distributed in
the form of (a) a Single-Life Annuity in the case of a Participant who is not
married or in a domestic partnership as of his or her Annuity Starting Date; and
(b) a 50% Joint-and-Survivor Annuity, in the case of a Participant who is married
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or who has a Domestic Partner as of his or her Annuity Starting Date. If a
Participant is married or has a Domestic Partner as of the Participant’s Annuity
Starting Date, any election of a form of distribution other than a 50% Joint-and-
Survivor Annuity shall not take effect unless the Participant’s Spouse or Domestic
Partner consents in writing to the election of such optional form of distribution
during the Election Period.
7.3 Spousal or Domestic Partner’s Consent.
Any Spouse's or Domestic Partner's consent under Section 7.2 above shall be in
writing, shall specify the particular form of benefit elected by the Participant,
shall acknowledge the effect of such election and shall be witnessed by a notary
public. A consent, once given by a Spouse or Domestic Partner, shall not be
revocable by such Spouse or Domestic Partner. The Spouse’s or Domestic
Partner's consent shall not be required if (a) the Participant establishes to the
Employer’s satisfaction that the Spouse’s or Domestic Partner's consent cannot be
obtained because the Spouse or Domestic Partner cannot be located or (b) the
Participant is legally separated or has been abandoned (within the meaning of
local law) and has an appropriate court order (unless a qualified domestic
relations order provides otherwise) and, in either such case, (c) the Participant
agrees in writing that, if the Employer is compelled by a court of competent
jurisdiction or other authority to pay all or any portion of the Participant’s Plan
benefit to or on behalf of such Spouse or Domestic Partner, the Participant will
indemnify the Employer, by paying to the Employer, upon written demand, an
amount equal to such payment, together with reasonable attorneys’ fees and
expenses. The Employer may, in its sole discretion, waive the indemnification
requirement. If the Spouse or Domestic Partner is legally incompetent to give
consent, the Spouse’s or Domestic Partner's legal guardian (including the
Participant) may give consent.
7.4 Information on Distribution Options.
Within a reasonable period on or before the Election Period, the Plan
Administrator shall provide to each Participant a written explanation of his or her
distribution options, including his or her right to defer receipt of a distribution.
Such explanation shall include information prescribed by applicable regulations,
including:
(a) The terms and conditions of the available forms of benefit under the Plan;
(b) The Participant’s right to elect an optional form of benefit rather than the
Single-Life Annuity (if the Participant is not married or in a domestic
partnership or the 50% Joint-and-Survivor Annuity (if the Participant is
married or has a Domestic Partner);
(c) Information concerning the relative values of all forms of benefit under
the Plan;
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(d) The right of the Participant’s Spouse or Domestic Partner to give or refuse
consent to the Participant’s election of an optional form of benefit;
(e) The Participant’s right to revoke an election of a form of benefit; and
(f) The effect of an election or revocation described in (b) or (e).
7.5 Death of Spouse or Domestic Partner or Dissolution of Marriage or Domestic
Partnership.
If a Participant would be entitled to the 50% Joint-and-Survivor Annuity but prior
to his or her Annuity Starting Date his or her Spouse or Domestic Partner dies or
the Participant is divorced from the Spouse or the domestic partnership is
dissolved, then the 50% Joint-and-Survivor Annuity shall be canceled
automatically and Section 7.2 shall apply. If the Spouse’s or Domestic Partner's
death or a divorce or dissolution of domestic partnership occurs on or after the
Participant’s Annuity Starting Date, then the Participant’s form of benefit shall
nevertheless remain in effect.
7.6 Required Distributions.
A Participant’s Accrued Benefit shall commence payment on or before the
Participant’s Required Beginning Date.
For each Plan Year beginning with the Plan Year containing the Participant’s
Required Beginning Date, the increase in the Participant’s Accrued Benefit
accrued during such Plan Year shall be made or commenced on the first day of
the next following Plan Year.
No individual’s life expectancy shall be recalculated with respect to the payment
of any pension under the Plan except at the written request of the individual and
as permitted pursuant to applicable Income Tax Regulations under Code section
401(a)(9).
Any other provision of the Plan to the contrary notwithstanding, all distributions
will be made in accordance with Code section 401(a)(9), including applicable
Income Tax Regulations.
7.7 Involuntary Lump Sum Cash-Outs.
Any other provision of the Plan notwithstanding, if the Actuarial Equivalent
single-sum value of the Participant’s vested Accrued Benefit is not more than
$1,000 as of his or her Termination Date or Required Beginning Date, if earlier,
such vested Accrued Benefit shall be paid in a single lump-sum payment in cash.
Similarly, if the Actuarial Equivalent single-sum value of the vested Accrued
Benefit payable to an alternate payee pursuant to a qualified domestic relations
order (as defined in Section 13.4) is not more than $1,000 and payment of such
benefit has not commenced, such vested Accrued Benefit shall be paid in a single
48
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lump-sum payment in cash. After payment of a Participant’s Accrued Benefit or
benefit of an alternate payee has commenced, no such lump-sum payment shall be
made without the written consent of the appropriate Participant (and, if the
Participant is married or has a Domestic Partner, the Participant’s Spouse or
Domestic Partner), surviving Spouse or Domestic Partner or alternate payee.
Immediately following the Termination Date of a Participant whose vested
Accrued Benefit is zero, such Participant shall be deemed to have received
payment of his or her entire Accrued Benefit as a single lump-sum payment in
cash in the amount of zero dollars.
ARTICLE 8. PRERETIREMENT DEATH BENEFITS.
8.1 Beneficiary’s Benefit Eligibility.
The Beneficiary of a Participant who dies under either of the two circumstances
next described shall be entitled to a Death Benefit under this Article 8:
(a) The Participant was no longer an Employee at the time of his or her death,
died prior to his or her Annuity Starting Date, but nevertheless was
entitled to a vested benefit under Section 5.1, 5.2 or 5.3; or
(b) The Participant was an Employee at the time of his or her death and died
prior to his or her Annuity Starting Date. Such Participant shall be 100%
vested in his or her Accrued Benefit upon death, provided that the
Participant was an Employee at the time of his or her death and died prior
to his or her Annuity Starting Date.
8.2 Payment of Death Benefit.
Payment of the Death Benefit shall begin to the Beneficiary as of the first day of
the month following the Participant’s death. Notwithstanding the preceding
sentence, if the Beneficiary is the Participant’s Spouse and the Participant dies
prior to attaining his or her Normal Retirement Date, payment of the Death
Benefit will be delayed until the first day of the month following the date the
Participant would have attained his or her Normal Retirement Date, unless the
Spouse elects an earlier payment as of the first day of any month following the
Participant’s death.
Any other provision of the Plan to the contrary notwithstanding, all distributions
will be made in accordance with Code section 401(a)(9), including applicable
Income Tax Regulations.
8.3 Form of Death Benefit.
If a Participant’s Death Benefit is paid other than to his or her Spouse or
Domestic Partner, payment shall be made in a lump-sum payment in cash. If the
Participant’s Death Benefit is payable to his or her Spouse or Domestic Partner,
49
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payment shall be made as an annuity for the life of the surviving Spouse or
Domestic Partner that is payable monthly, unless the surviving Spouse or
Domestic Partner elects to receive the benefit as a lump-sum payment in cash.
8.4 Amount of Death Benefit.
(a) If payable in a lump sum, the Death Benefit shall be in an amount equal to
the Participant’s Accumulated Contributions Account as of the date
payment of such benefit is commenced.
(b) If payable to the surviving Spouse or Domestic Partner as a single-life
annuity, the Death Benefit shall be payable as the Actuarial Equivalent of
the Participant’s Accrued Benefit based on the factors set forth in
Appendix A and the surviving Spouse's or Domestic Partner's age at the
time the benefit is commenced.
8.5 Designation of Beneficiary.
Subject to Section 8.6, the Beneficiary entitled to the Death Benefit shall be the
Participant’s Spouse or Domestic Partner; provided, however, that the Participant
may designate a Beneficiary other than his or her Spouse or Domestic Partner if:
(a) the Spouse has executed a Spousal Consent or Domestic Partner has
executed a Domestic Partner's Consent, as defined in Section 8.6;
(b) the Participant has no Spouse or Domestic Partner; or
(c) the Spouse or Domestic Partner cannot be located.
A Participant may designate from time to time any person as his or her
Beneficiary who will be entitled to receive the Participant’s Death Benefit after
the Participant’s death. Any Beneficiary designation by a Participant shall be
made during the Participant’s lifetime in writing in the manner prescribed by the
Plan Administrator. A Participant may change or revoke his or her Beneficiary
designation at any time in the manner prescribed by the Plan Administrator. A
Participant may revoke a designation of a Beneficiary other than his or her Spouse
or Domestic Partner, or designate his or her Spouse as Beneficiary, without
Spousal Consent or designate his or her Domestic Partner as Beneficiary without
the Domestic Partner's consent. Any Beneficiary designation shall be ineffective
if the Participant marries or remarries or enters a domestic partnership after the
designation was made. If the designated Beneficiary predeceases the Participant,
the Participant’s Beneficiary designation shall be ineffective with respect to such
Beneficiary.
If no Beneficiary designation is in effect at the time of the Participant’s death, his
or her benefit shall be paid as follows:
(a) to his or her surviving Spouse or Domestic Partner or, if there be none;
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(b) to his or her estate.
If the designated Beneficiary survives the Participant but dies before receiving the
benefit otherwise payable, it shall be paid in a lump sum to the heir or heirs of the
designated Beneficiary in accordance with the priorities established immediately
above.
8.6 Spousal or Domestic Partner Consent.
No designation of any Beneficiary under Section 8.5, other than the Participant’s
Spouse, by a married Participant, or the Participant's Domestic Partner by a
Participant who has a Domestic Partner, shall be effective unless all of the
following is true:
(a) the Spouse or Domestic Partner (or the Spouse’s or Domestic Partner's
legal guardian if the Spouse or Domestic Partner is legally incompetent)
executes a written instrument in which the Spouse or Domestic Partner
consents not to receive such Plan benefit and consents to the specific
Beneficiary designated by the Participant;
(b) the instrument acknowledges the effect of the election to which the
Spouse’s or Domestic Partner's consent is being given; and
(c) the signature of the Spouse or Domestic Partner on such election is
witnessed by a notary public.
Notwithstanding the above, a married Participant may designate a Beneficiary
other than his or her Spouse, and a Participant who has a Domestic Partner may
designate a Beneficiary other than his or her Domestic Partner at any time, or
change such designation, without the consent of his or her Spouse or Domestic
Partner; provided, however, that such designation, or change of designation, shall
have no effect if the Participant has a surviving Spouse or Domestic Partner as of
the date of his or her death.
8.7 Involuntary Lump Sum Cash-Outs.
Any other provision of the Article notwithstanding, if the Actuarial Equivalent
single-sum value of the Participant’s vested Accrued Benefit is not more than
$1,000 as of the date of his or her death, payment of the Death Benefit shall be
made to the Participant’s Beneficiary in a single lump-sum payment in cash as
soon as practicable after the date of the Participant’s death.
8.8 Death During Military Leave.
If a Participant dies on or after January 1, 2007, while on Military Leave, the
Participant’s surviving Spouse or Beneficiary is entitled to any preretirement
Death Benefit, 100 percent vesting in the Participant’s Accrued Benefit upon
death before the Annuity Starting Date, and Vesting Service (but not Benefit
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Service) credit for the period of the deceased Participant’s Military Leave
provided under the Plan had the Participant resumed and then terminated
employment with the Employer on account of death.
ARTICLE 9. ADMINISTRATION OF THE PLAN.
9.1 Plan Sponsor.
The “Plan Sponsor” is the Employer.
9.2 Plan Administrator.
The Plan Administrator is the Retirement Committee.
The Plan Administrator in its sole discretion shall make such rules, regulations,
interpretations and computations and shall take such other action to administer the
Plan as the Plan Administrator may deem appropriate and as are consistent with
the Plan and Trust Agreement. Such rules, regulations, interpretations,
computations and other necessary actions shall be conclusive and binding upon all
persons. The Plan Administrator shall enforce the Plan in accordance with the
terms of the Plan and the Trust Agreement and in accordance with the rules and
procedures that it adopts.
Where required, the Plan Administrator shall furnish the Plan Sponsor with such
information as may be required by it for tax or other purposes in connection with
the Plan.
The Plan Sponsor shall furnish the Plan Administrator with such data and
information as the Plan Administrator may deem necessary or desirable in order
to administer the Plan. The records of the Plan Sponsor as to a Participant’s
period of employment, termination of employment and the reason therefore,
leaves of absence, reemployment, and compensation shall be conclusive on all
persons unless proven to the Plan Administrator’s satisfaction to be incorrect.
9.3 Management of Plan Assets.
The Plan Sponsor shall maintain control over and management of the Plan’s
assets, but only to the extent that it (i) shall appoint one or more trustees to hold
all assets of the Plan in trust and shall enter into a trust agreement with each
trustee it appoints, (ii) shall have the authority to appoint one or more investment
managers for any Plan assets and to enter into an investment management
agreement with each investment manager it appoints and (iii) may direct the
allocation of Plan assets among equity securities, debt instruments or other
general investment categories.
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9.4 Trustees and Investment Managers.
Each Trustee shall have the exclusive authority and discretion to control and
manage the Plan assets held in trust by it, except to the extent that the Plan
Sponsor (i) allocates the authority to manage such assets to one or more
Investment Managers or (ii) directs the allocation of such assets among general
investment categories. Each Investment Manager shall have the exclusive
authority to manage, including the power to acquire and dispose of, the Plan
assets assigned to it by the Plan Sponsor, except to the extent that the Plan
Sponsor directs the allocation of such assets among general investment categories.
9.5 Delegation of Responsibilities.
The Plan Administrator may engage such attorneys, actuaries, accountants,
consultants or other persons to render advice or to perform services with regard to
its responsibilities under the Plan as it shall determine to be necessary or
appropriate. The Plan Administrator may designate by written instrument one or
more persons to carry out, where appropriate, responsibilities under the Plan. The
duties and responsibilities under the Plan of the Employer as Plan Administrator
or Plan Sponsor that have not been delegated to other individuals pursuant to the
preceding sentence shall be carried out by the directors, officers and employees of
the Employer, acting on behalf of and in the name of the Employer in their
capacities as directors, officers and employees.
9.6 Basis of Payments From the Plan.
All benefits payable under the Plan shall be paid by the Trustee out of the Trust
Fund pursuant to the directions of the Plan Administrator and the terms of the
Trust Agreement. The Trustee shall pay all expenses of the Plan pursuant to the
Trust Agreement, except such expenses as are paid by the Plan Sponsor.
ARTICLE 10. FUNDING OF THE PLAN.
10.1 Funding Policy and Method.
The Employer shall determine the funding method (i.e., the actuarial cost method)
and policy to be used in determining costs and liabilities under the Plan. The Plan
Administrator shall review such funding method from time to time, and if the Plan
Administrator determines that such funding method is no longer appropriate, then
it shall change funding methods.
10.2 Basis of Payments to the Plan.
All contributions to the Plan shall be made by the Employer, and no contributions
shall be required or permitted of Participants. From time to time the Employer
shall make such contributions to the Plan as are necessary or appropriate to fund
the benefits provided by the Plan and any expenses thereof that are paid out of the
Trust Fund. Prior to the termination of the Plan or the complete discontinuance of
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contributions thereunder, all forfeitures arising under the Plan shall be applied as
soon as reasonably practicable (within the constraints of the Plan’s funding
method) either to defray the reasonable expenses of administering the Plan or to
reduce future Employer contributions under the Plan and shall not be applied to
increase the benefits that any Participant would otherwise receive thereunder. All
contributions to the Plan shall be held by the Trustee in accordance with the Trust
Agreement.
10.3 Return of Employer Contributions.
(a) Mistake of Fact.
Any other provision of this Plan notwithstanding, if any Employer
contribution to the Plan is made by reason of a mistake of fact, the amount
contributed by reason of such mistake of fact (reduced by any losses
incurred with respect to such amount) shall be returned to the Employer
within 12 months after the date such Employer contribution was made.
(b) Failure to Obtain Initial Favorable Determination.
Any other provision of the Plan notwithstanding, each Employer
contribution is conditioned upon an initial favorable determination of
qualification under section 401(a) of the Code by the Internal Revenue
Service. If the Plan receives an adverse determination from the Internal
Revenue Service with respect to its initial qualification, the Employer
contribution amounts contributed to the Plan shall be returned to the
Employer within 12 months after the issuance of the adverse qualification
determination.
ARTICLE 11. BENEFITS CLAIM.
11.1 Claim of Benefits.
A Participant, Employee or Beneficiary shall notify the Plan Administrator in
writing of a claim of benefits under the Plan. The Plan Administrator shall take
such steps as may be necessary to facilitate the payment of such benefits to the
Participant, Employee or Beneficiary.
11.2 Appeal Procedure.
If any claim for benefits in denied by the Plan Administrator, the Plan
Administrator shall notify the claimant in writing of such denial, setting forth the
specific reasons and citing reference to specific provisions of the Plan upon which
the denial is based. An appeal period of sixty (60) days after receipt of the
notification of denial shall be granted and said notification shall advise the
claimant of the appeal procedure. The claimant shall file the appeal with the Plan
Administrator, whose decision shall be final.
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ARTICLE 12. AMENDMENT AND TERMINATION OF THE PLAN.
12.1 Plan Termination, Cessation of Accruals, and Additional Amendments.
In its sole and absolute discretion, the Employer may do any or all of the
following by resolution of the Executive Committee:
(a) Terminate the Plan and arrange to have the value of benefits accrued to the
date of termination paid to Participants. Unless otherwise specifically
provided by resolution of the Executive Committee, no additional benefits
(including but not limited to any benefits in lieu of the benefits provided
by this Plan) shall be provided after termination to any Employee for any
service or otherwise for any period after the termination. Termination
shall occur on the date specified in a resolution adopted by the Executive
Committee.
(b) Cease any and all accrual of benefits under the Plan. Unless otherwise
specifically provided by resolution of the Executive Committee, no
additional benefits (including but not limited to any benefits in lieu of the
benefits provided by this Plan) shall be provided after such cessation to
any Employee for any service or otherwise for any period after the
cessation. Cessation shall occur on the date specified in a resolution
adopted by the Executive Committee.
(c) Make any other amendments whatsoever to the Plan. Amendments shall
be effective on the date specified in the governing resolution by the
Executive Committee.
No amendment of the Plan shall reduce the benefit of any Participant accrued
under the Plan prior to the date when the amendment is adopted.
No amendment of the Plan shall violate the exclusive benefit rules of the
California Constitution or Code section 401(a)(2).
The Employer may take the action described in this section notwithstanding any
claim of “vested rights” by any person under California or federal law.
12.2 Rules Governing Termination of the Plan.
On termination of the Plan the following rules shall apply:
(a) Each Participant’s right to benefits accrued hereunder shall be 100%
vested and nonforfeitable.
(b) The Trust Fund shall continue until the assets of the Plan have been
distributed as provided below in Section 12.2(f).
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(c) Any other provisions hereof notwithstanding, the Employer shall have no
obligation to make any additional contributions to the Plan.
(d) Neither the Employer nor any other person shall have any liability or
obligation to provide benefits hereunder in excess of the value of the Trust
Fund.
(e) The Participants, Spouses and Beneficiaries shall obtain benefits solely
from the Trust Fund.
(f) The Trust Fund shall be allocated by the Plan Administrator among
Participants, Spouses and Beneficiaries in proportion to the Actuarial
Equivalent of their Accrued Benefits under the Plan.
(g) Any residual assets of the Trust Fund remaining after allocation under
Section 12.2(f) shall be distributed to the Employer if (i) all liabilities of
the Plan to Participants, Spouses and Beneficiaries have been satisfied and
(ii) such distribution does not contravene any provision of the Code or
California law.
12.3 Partial Termination.
Upon a partial termination of the Plan, within the meaning of section 411 of the
Code as determined by the Plan Administrator in its sole discretion and in
accordance with such section, Participants affected by the partial termination of
the Plan shall have a 100% vested and nonforfeitable interest in their benefits
accrued under this Plan. No other action shall be taken with respect to any
Participant on account of such partial termination.
ARTICLE 13. GENERAL PROVISIONS.
13.1 Subsequent Changes.
All benefits to which any Participant, Spouse or Beneficiary may be entitled
hereunder shall be determined under the Plan as in effect when the Participant’s
Employment terminates and shall not be affected by any subsequent change in the
provisions of the Plan, unless the Participant is reemployed as an Eligible
Employee.
13.2 Plan Mergers.
Except as otherwise provided in regulations issued by the Secretary of the
Treasury or his delegate, the Plan shall not merge or consolidate with, or transfer
assets or liabilities to, any other plan unless each Participant would receive a
benefit immediately after such merger, consolidation or transfer (if the Plan then
terminated) that is equal to or greater than the benefit such Participant would have
been entitled to receive immediately before the merger, consolidation or transfer
(if the Plan had then terminated).
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13.3 No Assignment of Property Rights.
No benefit payable from the Plan to any Participant or Beneficiary or any other
person shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, or charge, and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void.
No such benefit shall in any manner be liable for, or subject to, the debts,
contracts, liabilities, engagements, or torts of any such person, nor shall it be
subject to execution, attachment or any process whatsoever for or against such
person, except to such extent as may be permitted under uniform procedures
adopted by the Plan Administrator or as required by law.
Nothing in this Plan shall prohibit a Participant or Beneficiary from voluntarily
agreeing to the assignment of benefits payable under this Plan. Such assignment
shall be in accordance with rules established by the Plan Administrator and may
be by payroll withholding or any other mechanism that is approved by the Plan
Administrator, at its sole discretion.
13.4 Qualified Domestic Relations Order.
The provisions of Section 13.3 will not apply in the case of any property
settlements upon marital dissolution or legal separation, or dissolution of a
domestic partnership, that are made in accordance with a domestic relations order
(“DRO”) issued in accordance with state domestic law. The provisions of Section
13.3 will apply in the case of any property settlement upon marital dissolution or
legal separation or dissolution of a domestic partnership, that is made in
accordance with a domestic relations order that is not a Qualified Domestic
Relations Order.
When the Plan Administrator receives a domestic relations order, the Plan
Administrator shall:
(a) Notify the Participant (or Beneficiary) and the former Spouse, Domestic
Partner or dependent covered by the domestic relations order of the receipt
of the order with a notice which explains the procedures for determining
the qualified status of domestic relations orders; and
(b) Under procedures established by the Plan Administrator, determine
whether the domestic relations order is a Qualified Domestic Relations
Order.
For purposes of this Section, “domestic relations order” or “DRO” means any
judgment, decree, or order made in accordance with state domestic relations law
which relates to the provision of child support, spousal or Domestic Partner
maintenance, or marital or domestic partnership property rights of any Spouse,
former Spouse, Domestic Partner, former Domestic Partner, child, or other
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dependent of a Participant. A domestic relations order shall not be considered a
DRO with respect to this Plan if it is inconsistent with the Plan.
13.5 Incompetence.
If, in the opinion of the Plan Administrator, any person becomes unable to handle
properly any amounts payable under the Plan, the Plan Administrator may make
any arrangement for payment on such person’s behalf that it determines will be
beneficial to such person, including (without limitation) payment to such person’s
guardian, conservator, Spouse, Domestic Partner or dependent.
13.6 No Employment Rights.
Nothing in the Plan shall be deemed to give any person any right to remain in the
employ of the Employer or affect any right of the Employer to terminate a
person’s employment with or without cause.
13.7 Proof.
Participants, Spouses and Domestic Partners shall furnish proof of age and marital
status or domestic partnership and any other required information satisfactory to
the Plan Administrator at such time or times as the Plan Administrator shall
prescribe. The Plan Administrator may delay the disbursement of any benefits
under the Plan until all pertinent information with respect to age or marital or
domestic partnership status has been furnished.
13.8 Choice of Law.
The provisions of the Plan shall be construed, administered and enforced in
accordance with applicable laws of the State of California to the extent not
preempted by applicable federal law, and in a manner consistent with the
intention that the Plan qualify for favorable tax treatment under section 401(a) of
the Code.
13.9 Direct Rollover.
If a single sum distribution is to be made under this Plan to a Participant, the
surviving Spouse of a Participant, a former Spouse who is an alternate payee
under the Plan, or, effective for distributions on or after January 1, 2007, a non-
Spouse Beneficiary, who is a designated beneficiary (as defined in section
401(a)(9) of the Code), such distributee may elect to have all or a portion of such
single sum distribution paid directly to an “Eligible Retirement Plan” in a direct
transfer from the Trustee to the trustee of such plan; provided, however, that in
the case of a non-Spouse designated Beneficiary, the direct rollover may be made
only to an individual retirement account or annuity described in section 408(a) or
section 408(b) of the Code, or, effective for distributions on or after January 1,
2008, a Roth IRA described in section 408A of the Code (‘IRA’) that is
established on behalf of the designated Beneficiary and that will be treated as an
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inherited IRA pursuant to the provisions of section 402(c)(11) of the Code. Also,
in this case, the determination of any required minimum distribution under section
401(a)(9) of the Code that is ineligible for rollover shall be made in accordance
with Notice 2007-7, Q&A 17 and 18, 2007-5 I.R.B. 395.
“Eligible Retirement Plan” means any of the following:
(a) An individual retirement account described in section 408(a) of the Code;
(b) An individual retirement annuity described in section 408(b) of the Code;
(c) An annuity plan described in section 403(a) of the Code;
(d) An annuity contract described in section 403(b) of the Code;
(e) An eligible plan under section 457(b) of the Code which is maintained by
a state, political subdivision of a state, or any agency or instrumentality of
a state or political subdivision of a state and which agrees to separately
account for amounts transferred into such plan from this Plan;
(f) A qualified trust described in section 401(a) of the Code, which is a
defined contribution plan, the terms of which permit the acceptance of
eligible rollover distributions; or
(g) Effective for distributions on or after January 1, 2008, a Roth IRA
described in section 408A of the Code.
The Employer may establish such rules for the provision of direct rollovers as are
permitted under section 401(a)(31) and section 402 of the Code and the
regulations thereunder.
ARTICLE 14. LIMITATIONS ON BENEFITS.
14.1 Limitation on Retirement Income.
Unless the alternate limitation of Section 14.2 below applies, a Participant’s
Annual Benefit at any time during a Plan Year shall not exceed the dollar
limitation for defined-benefit plans of $160,000 under section 415(b)(1)(A) of the
Code, adjusted in such manner as the Secretary of the Treasury shall prescribe
effective as of the January 1 of such Plan Year.
If a Participant would exceed the foregoing limitation, then the Participant’s
Annual Benefit shall be reduced by reducing the components thereof as necessary
in the order in which they are listed in Section 14.8 below.
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14.2 Alternate Limitation for Retirement Income up to $10,000.
A Participant’s Annual Benefit shall not be subject to the limitation of Section
14.1 above if:
(a) The Participant’s Annual Benefit does not exceed $10,000; and
(b) The Participant has never participated in a qualified defined-contribution
plan maintained by any Affiliated Employer.
14.3 Reduced Limitations for Participants With Fewer Than 10 Years of Employment.
In the case of a Participant who has not completed 10 years of Employment
(determined with respect to the date as of which benefit payments are to
commence), the $10,000 amount described in Section 14.2 above shall be
multiplied by a fraction determined as follows:
(a) The numerator of such fraction shall be the number of years and partial
years of the Participant’s Employment; and
(b) The denominator of such fraction shall be 10.
14.4 Reduced Limitation for Participants With Fewer Than 10 Years of Benefit
Service.
In the case of a Participant who has not completed 10 Years of Benefit Service in
the Plan (determined with respect to the date as of which benefit payments are to
commence), the limitation otherwise applicable to the Participant under Section
14.1 above shall be multiplied by a fraction determined as follows:
(a) The numerator of such fraction shall be the number of years and partial
years of the Participant’s Years of Benefit Service; and
(b) The denominator of such fraction shall be 10.
14.5 Adjusted Limitation for Benefits Commencing Before Age 62.
The limitation in Section 14.1 is treated as an annual annuity payable for life
commencing at age 65. This limitation shall be unreduced if the Participant’s
Annual Benefit commences on or after age 62. This limitation shall be reduced if
a Participant’s Annual Benefit commences before he or she attains age 62.
If a Participant’s Annual Benefit commences prior to age 62, the limitation in
Section 14.1 shall be adjusted to commence payment at such age. This adjusted
limitation shall be the lesser of:
(a) the Actuarial Equivalent, at such age, of the limitation in Section 14.1
commencing at age 62. For purposes of the preceding sentence, Actuarial
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Equivalent shall be based on the actuarial assumptions designated in
Appendix A, with the exception that no mortality decrement shall apply
prior to retirement.
(b) the Actuarial Equivalent, at such age, of the limitation in Section 14.1
commencing at age 62. For purposes of the preceding sentence, Actuarial
Equivalent shall be based on the actuarial assumptions designated in
Appendix A, with the exceptions that (i) interest shall be at 5.0%; and (ii)
no mortality decrement shall apply prior to retirement.
14.6 Adjusted Limitation for Benefits Commencing After Age 65.
The limitation described in Section 14.1 above shall be increased if a Participant’s
Annual Benefit commences after he or she attains age 65.
If a Participant’s Annual Benefit commences after age 65, the limitation in
Section 14.1 shall be adjusted to commence payment at such age. This adjusted
limitation shall be the lesser of:
(a) the Actuarial Equivalent, at such age, of the limitation in Section 14.1
commencing at age 65. For purposes of the preceding sentence, Actuarial
Equivalent shall be based on the actuarial assumptions designated in
Appendix A, with the exception that no mortality decrement shall apply
prior to retirement.
(b) the Actuarial Equivalent, at such age, of the limitation in Section 14.1
commencing at age 65. For purposes of the preceding sentence, Actuarial
Equivalent shall be based on the actuarial assumptions designated in
Appendix A, with the exceptions that (i) interest shall be at 5.0%; and (ii)
no mortality decrement shall apply prior to retirement.
14.7 Affiliated Employer.
Solely for purposes of this Article 14, the term “Affiliated Employer” shall be
defined by substituting the phrase “more than 50 percent” for the phrase “more
than 80 percent” in each place it appears in section 1563(a)(1) of the Code.
14.8 Annual Benefit.
For purposes of this Article 14, a Participant’s “Annual Benefit” shall be equal to
the sum of the following:
(a) The aggregate annual retirement benefit to which the Participant is entitled
under any other qualified defined-benefit plans maintained by any
Affiliated Employer;
(b) The annual retirement benefit to which the Participant is entitled under
this Plan;
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(c) The aggregate annual retirement benefit that has been distributed to the
Participant under any other qualified defined-benefit plans maintained by
any Affiliated Employer; and
(d) The aggregate annual retirement benefit that has been distributed to the
Participant under this Plan.
If the Participant’s benefit is or was payable in a form other than a straight-life
annuity, the “Annual Benefit” shall be a straight-life annuity that is the Actuarial
Equivalent of such other form of benefit. Actuarial Equivalent for purposes of
this paragraph shall be based on the actuarial assumptions used in Appendix A,
but with the following exceptions. For purposes of adjusting any form of benefit
subject to Code section 417(e)(3) during the Plan Years beginning in the 2005
calendar year, the rate of Interest shall be the greater of 5.5% and the rate of
Interest provided in Appendix A. For purposes of adjusting any other form of
benefit, the rate of Interest shall be the greater of 5.0% and the rate of Interest
provided in Appendix A. For purposes of adjusting any form of benefit subject to
Code section 417(e)(3) for distributions made in Plan Years beginning after the
2005 calendar year, the interest rate shall be equal to the greatest of (i) 5.5
percent, (ii) the rate that provides a benefit of not more than 105 percent of the
benefit that would be provided if the applicable interest rate (as defined in Code
section 417(e)(3)) were used, or (iii) the interest rate specified in Appendix A.
ARTICLE 15. EXECUTION.
To record the restatement of the Plan to read as set forth herein, effective as of January 1,
20172020, the Chief Legal Counsel, has executed this Plan on , 20172021.
L.A. CARE HEALTH PLAN
By ___________________________
______________________________
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A-1
APPENDIX A
ACTUARIAL EQUIVALENCE
1. Sections 5.5, 6.2(e), 7.1, 7.7, 8.4(b), 14.5(a), 14.6(a), and 14.8: Actuarial Equivalency
shall be determined on the following basis:
Interest: the Applicable Interest Rate in effect on the Annuity Starting Date.
Mortality: the Applicable Mortality Table in effect on the Annuity Starting Date.
2. Section 6.1: The Single-Life Annuity is determined by increasing the Accumulated
Contributions Account by Interest for the period beginning on the determination date and
ending on the later of the Participant’s Annuity Starting Date and the Participant’s
Normal Retirement Date, and then dividing this amount by the present value of an
immediate Single-Life Annuity payable beginning on the later of the Participant’s
Annuity Starting Date and the Participant’s Normal Retirement Date in the amount of
$1.00 per month. For this purpose, Interest shall be given below, and the present value is
determined by using the following actuarial assumptions:
Interest: the Applicable Interest Rate in effect on the determination date.
Mortality: the Applicable Mortality Table in effect on the determination date.
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APPENDIX B
ELIGIBLE EMPLOYEES, ENTRY DATE, TARGET ALLOCATIONS, AND VESTING
This Appendix B sets forth the name of each individual who has been designated as an Eligible
Employee by the Board on a separate schedule for each individual. Each such schedule also
includes the Entry Date, Target Allocations and Vesting Provisions for the individual as
designated by the Board.
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APPENDIX B
Schedule 1
Eligible Employee: Elaine Batchlor
Entry Date: June 1, 2006
Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 6/1/06 to 5/31/07 Computation Period: $12,100
Target Allocation for 6/1/07 to 5/31/08 Computation Period: $27,700
Target Allocation for 6/1/08 to 5/31/09 Computation Period: $27,700
Target Allocation for 6/1/09 to 5/31/10 Computation Period: $27,700
Target Allocation for 6/1/10 to 5/31/11 Computation Period: $34,000
Target Allocation for 6/1/11 to 5/31/12 Computation Period: $34,000
Target Allocation for 6/1/12 to 5/31/13 Computation Period: $34,000
Target Allocations for Computation Periods beginning after 5/31/2013 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX B
Schedule 2
Eligible Employee: Augustavia Haydel
Entry Date: June 1, 2006
Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 6/1/06 to 5/31/07 Computation Period: $10,300
Target Allocation for 6/1/07 to 5/31/08 Computation Period: $22,500
Target Allocation for 6/1/08 to 5/31/09 Computation Period: $22,500
Target Allocation for 6/1/09 to 5/31/10 Computation Period: $22,500
Target Allocation for 6/1/10 to 5/31/11 Computation Period: $25,500
Target Allocation for 6/1/11 to 5/31/12 Computation Period: $25,500
Target Allocation for 6/1/12 to 5/31/13 Computation Period: $25,500
Target Allocation for 6/1/13 to 5/31/14 Computation Period: $23,500
Target Allocation for 6/1/14 to 5/31/15 Computation Period: $23,500
Target Allocation for 6/1/15 to 5/31/16 Computation Period: $23,500
Target Allocation for 6/1/16 to 5/31/17 Computation Period: $29,300
Target Allocation for 6/1/17 to 5/31/18 Computation Period: $29,300
Target Allocation for 6/1/18 to 5/31/19 Computation Period: $29,300
Target Allocation for 6/1/19 to 5/31/20 Computation Period: $38,500
Target Allocation for 6/1/20 to 5/31/21 Computation Period: $38,500
Target Allocation for 6/1/21 to 5/31/22 Computation Period: $38,500
Target Allocations for Computation Periods beginning after 5/31/20192022 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX B
Schedule 3
Eligible Employee: James Brown
Entry Date: January 4, 2010
Initial Computation Period: January 4, 2010, through May 31, 2010
Subsequent Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 1/4/10 to 5/31/10 Computation Period: $9,375
Target Allocation for 6/1/10 to 5/31/11 Computation Period: $24,500
Target Allocation for 6/1/11 to 5/31/12 Computation Period: $24,500
Target Allocation for 6/1/12 to 5/31/13 Computation Period: $24,500
Target Allocations for Computation Periods beginning after 5/31/2013 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX B
Schedule 4
Eligible Employee: Timothy Reilly
Entry Date: July 1, 2011
Initial Computation Period: July 1, 2011, through May 31, 2012
Subsequent Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 7/1/11 to 5/31/12 Computation Period: $20,166.67
Target Allocation for 6/1/12 to 5/31/13 Computation Period: $22,000.00
Target Allocation for 6/1/13 to 5/31/14 Computation Period: $35,400.00
Target Allocation for 6/1/14 to 5/31/15 Computation Period: $35,400.00
Target Allocation for 6/1/15 to 5/31/16 Computation Period: $35,400.00
Target Allocations for Computation Periods beginning after 5/31/2016 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX B
Schedule 5
Eligible Employee: Gertrude Carter
Entry Date: December 6, 2012
Initial Computation Period: December 1, 2012, through May 31, 2013
Subsequent Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 12/1/12 to 5/31/13 Computation Period: $17,000
Target Allocation for 6/1/13 to 5/31/14 Computation Period: $34,200
Target Allocation for 6/1/14 to 5/31/15 Computation Period: $34,200
Target Allocation for 6/1/15 to 5/31/16 Computation Period: $34,200
Target Allocation for 6/1/16 to 5/31/17 Computation Period: $37,400
Target Allocation for 6/1/17 to 5/31/18 Computation Period: $37,400
Target Allocation for 6/1/18 to 5/31/19 Computation Period: $37,400
Target Allocations for Computation Periods beginning after 5/31/2019 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX B
Schedule 6
Eligible Employees: Each Employee who is employed by L.A. Care prior to January 1,
2013, and who is a Director or Senior Director (or equivalent salary grade) on December
31, 2012 or who becomes a Director or Senior Director (or equivalent salary grade) after
that date.
Entry Date: December 6, 2012
Initial Computation Period: December 1, 2012, through May 31, 2013
Subsequent Computation Period: June 1 through May 31
Target Allocations for each Employee described in this Schedule 6:
Target Allocation for 12/1/12 to 5/31/13 Computation Period: $1.00
Target Allocation for 6/1/13 to 5/31/14 Computation Period: $1.00
Target Allocation for 6/1/14 to 5/31/15 Computation Period: $1.00
Target Allocation for 6/1/15 to 5/31/16 Computation Period: $1.00
Target Allocation for 6/1/16 to 5/31/17 Computation Period: $1.00
Target Allocation for 6/1/17 to 5/31/18 Computation Period: $1.00
Target Allocation for 6/1/18 to 5/31/19 Computation Period: $1.00
Target Allocations for Computation Periods beginning after 5/31/2019 shall be $1.00.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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B-8
APPENDIX B
Schedule 7
Eligible Employee: Maribel Ferrer
Entry Date: November 30, 2015
Initial Computation Period: November 30, 2015 through May 31, 2016
Subsequent Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 11/30/15 to 5/31/16 Computation Period: $12,000
Target Allocation for 6/1/16 to 5/31/17 Computation Period: $25,200
Target Allocation for 6/1/17 to 5/31/18 Computation Period: $25,200
Target Allocations for Computation Periods beginning after 5/31/2018 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX B
Schedule 8
Eligible Employees: Bruce Pollack
Entry Date: October 19, 2015
Initial Computation Period: October 19, 2015 through May 31, 2016
Subsequent Computation Period: June 1 through May 31
Target Allocations:
Target Allocation for 10/19/15 to 5/31/16 Computation Period: $16,100
Target Allocation for 6/1/16 to 5/31/17 Computation Period: $27,800
Target Allocation for 6/1/17 to 5/31/18 Computation Period: $27,800
Target Allocations for Computation Periods beginning after 5/31/2018 shall equal 1% of
Compensation rounded to the nearest one-hundred dollars.
Vesting Provisions:
Vesting Service
Vested
Percentage
1 Year 33 1/3%
2 Years 66 2/3%
3 Years 100%
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APPENDIX C
MINIMUM DISTRIBUTION REQUIREMENTS
C.1. Precedence.
The requirements of this Appendix will take precedence over any inconsistent provisions of the
Plan.
C.2. Requirements of Treasury Regulations Incorporated.
All distributions required under this Appendix will be determined and made in accordance with
the Treasury regulations under section 401(a)(9) of the Internal Revenue Code.
C.3. Time and Manner of Distribution.
C.3.1. Required Beginning Date. The Participant's entire interest will be distributed, or begin to
be distributed, to the Participant no later than the Participant's Required Beginning Date.
C.3.2. Death of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant's entire interest will be distributed, or begin to be distributed
in accordance with Article 8, but no later than as follows:
(a) If the Participant's surviving Spouse is the Participant's sole designated
beneficiary, then, distributions to the surviving Spouse will begin by December
31 of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the Participant
would have attained age 70 1/2, if later. ½, if later. Effective for distributions
required to be made after December 31, 2019, with respect to Participants who
attain age 70½ after that date, age “72” is substituted for age “70½” in the
preceding sentence.
(b) If the Participant's surviving Spouse is not the Participant's sole designated
beneficiary, then distributions to the designated beneficiary will begin by
December 31 of the calendar year immediately following the calendar year in
which the Participant died.
(c) If there is no designated beneficiary as of September 30 of the year following
the year of the Participant's death, the Participant's entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary
of the Participant's death.
(d) If the Participant's surviving Spouse is the Participant's sole designated
beneficiary and the surviving Spouse dies after the Participant but before
distributions to the surviving Spouse begin, this section C.3.2, other than section
C.3.2(a), will apply as if the surviving Spouse were the Participant.
For purposes of this section C.3.2 and section C.4, distributions are considered to begin on the
Participant's Required Beginning Date (or, if section C.3.2(d) applies, the date distributions are
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C-2
required to begin to the surviving Spouse under section C.3.2(a)). If annuity payments
irrevocably commence to the Participant before the Participant's Required Beginning Date (or to
the Participant's surviving Spouse before the date distributions are required to begin to the
surviving Spouse under section C.3.2(a)), the date distributions are considered to begin is the
date distributions actually commence.
C.3.3. Form of Distribution. Unless the Participant's interest is distributed in the form of an
annuity purchased from an insurance company or in a single sum on or before the required
beginning date, as of the first distribution calendar year distributions will be made in accordance
with sections C.4, C.5 and C.6 of this Appendix. If the Participant's interest is distributed in the
form of an annuity purchased from an insurance company, distributions thereunder will be made
in accordance with the requirements of section 401(a)(9) of the Code and the Treasury
regulations. Any part of the Participant's interest which is in the form of an individual account
described in section 414(k) of the Code will be distributed in a manner satisfying the
requirements of section 401(a)(9) of the Code and the Treasury regulations that apply to
individual accounts.
Section C.4. Determination of Amount to be Distributed Each Year.
C.4.1. General Annuity Requirements. If the Participant's interest is paid in the form of annuity
distributions under the Plan, payments under the annuity will satisfy the following requirements:
(a) the annuity distributions will be paid in periodic payments made at intervals
not longer than one year;
(b) the distribution period will be over a life (or lives) or over a period certain not
longer than the period described in section C.5 or C.6;
(c) once payments have begun over a period certain, the period certain will not be
changed even if the period certain is shorter than the maximum permitted;
(d) payments will either be nonincreasing or increase only as follows:
(1) by an annual percentage increase that does not exceed the annual percentage
increase in a cost-of-living index that is based on prices of all items and issued by
the Bureau of Labor Statistics;
(2) to the extent of the reduction in the amount of the Participant's payments to
provide for a survivor benefit upon death, but only if the beneficiary whose life
was being used to determine the distribution period described in section C.5 dies
or is no longer the Participant's beneficiary pursuant to a qualified domestic
relations order within the meaning of section 414(p);
(3) to provide cash refunds of employee contributions upon the Participant's
death; or
(4) to pay increased benefits that result from a Plan amendment.
C.4.2. Amount Required to be Distributed by Required Beginning Date. The amount that must
be distributed on or before the Participant's required beginning date (or, if the Participant dies
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C-3
before distributions begin, the date distributions are required to begin under section C.3.2(a) or
(b)) is the payment that is required for one payment interval. The second payment need not be
made until the end of the next payment interval even if that payment interval ends in the next
calendar year. Payment intervals are the periods for which payments are received, e.g., bi-
monthly, monthly, semi-annually, or annually. All of the Participant's benefit accruals as of the
last day of the first distribution calendar year will be included in the calculation of the amount of
the annuity payments for payment intervals ending on or after the Participant's required
beginning date.
C.4.3. Additional Accruals After First Distribution Calendar Year. Any additional benefits
accruing to the Participant in a calendar year after the first distribution calendar year will be
distributed beginning with the first payment interval ending in the calendar year immediately
following the calendar year in which such amount accrues.
Section 5. Requirements For Annuity Distributions That Commence During Participant's
Lifetime.
C.5.1. Joint Life Annuities Where the Beneficiary Is Not the Participant's Spouse. If the
Participant's interest is being distributed in the form of a joint and survivor annuity for the joint
lives of the Participant and a non-Spouse beneficiary, annuity payments to be made on or after
the Participant's required beginning date to the designated beneficiary after the Participant's
death must not at any time exceed the applicable percentage of the annuity payment for such
period that would have been payable to the Participant using the table set forth in Q&A-2(c) of
section 1.401(a)(9)-6 of the Treasury regulations. If the form of distribution combines a joint
and survivor annuity for the joint lives of the Participant and a non-Spouse beneficiary and a
period certain annuity, the requirement in the preceding sentence will apply to annuity payments
to be made to the designated beneficiary after the expiration of the period certain.
C.5.2. Period Certain Annuities. Unless the Participant's Spouse is the sole designated
beneficiary and the form of distribution is a period certain and no life annuity, the period certain
for an annuity distribution commencing during the Participant's lifetime may not exceed the
applicable distribution period for the Participant under the Uniform Lifetime Table set forth in
section 1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity
starting date. If the annuity starting date precedes the year in which the Participant reaches age
70, the applicable distribution period for the Participant is the distribution period for age 70
under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations
plus the excess of 70 over the age of the Participant as of the Participant's birthday in the year
that contains the annuity starting date. If the Participant's Spouse is the Participant's sole
designated beneficiary and the form of distribution is a period certain and no life annuity, the
period certain may not exceed the longer of the Participant's applicable distribution period, as
determined under this section C.5.2, or the joint life and last survivor expectancy of the
Participant and the Participant's Spouse as determined under the Joint and Last Survivor Table
set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Participant's and Spouse's
attained ages as of the Participant's and Spouse's birthdays in the calendar year that contains the
annuity starting date.
Section C.6. Requirements For Minimum Distributions Where Participant Dies Before Date
Distributions Begin.
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C-4
C.6.1. Participant Survived by Designated Beneficiary. If the Participant dies before the date
distribution of his or her interest begins and there is a designated beneficiary, the Participant's
entire interest will be distributed, beginning no later than the time described in section C.3.2(a)
or (b), over the life of the designated beneficiary or over a period certain not exceeding:
(a) unless the annuity starting date is before the first distribution calendar year, the
life expectancy of the designated beneficiary determined using the beneficiary's
age as of the beneficiary's birthday in the calendar year immediately following the
calendar year of the Participant's death; or
(b) if the annuity starting date is before the first distribution calendar year, the life
expectancy of the designated beneficiary determined using the beneficiary's age as
of the beneficiary's birthday in the calendar year that contains the annuity starting
date.
C.6.2. No Designated Beneficiary. If the Participant dies before the date distributions begin and
there is no designated beneficiary as of September 30 of the year following the year of the
Participant's death, distribution of the Participant's entire interest will be completed by December
31 of the calendar year containing the fifth anniversary of the Participant's death.
C.6.3. Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the
Participant dies before the date distribution of his or her interest begins, the Participant's
surviving Spouse is the Participant's sole designated beneficiary, and the surviving Spouse dies
before distributions to the surviving Spouse begin, this section C.6 will apply as if the surviving
Spouse were the Participant, except that the time by which distributions must begin will be
determined without regard to section C.3.2(a).
Section C.7. Definitions.
C.7.1. Designated beneficiary. The individual who is designated as the beneficiary under section
2.9 of the Plan and is the designated beneficiary under section 401(a)(9) of the Code and section
1.401(a)(9)-4, Q&A-1, of the Treasury regulations.
C.7.2. Distribution calendar year. A calendar year for which a minimum distribution is required.
For distributions beginning before the Participant's death, the first distribution calendar year is
the calendar year immediately preceding the calendar year which contains the Participant's
required beginning date. For distributions beginning after the Participant's death, the first
distribution calendar year is the calendar year in which distributions are required to begin
pursuant to section C.3.2.
C.7.3 Life expectancy. Life expectancy as computed by use of the Single Life Table in section
1.401(a)(9)-9 of the Treasury regulations.
C.7.4. Required beginning date. The date specified in section 2.38 of the Plan.
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D-1
APPENDIX D
PUBLIC EMPLOYEES' PENSION REFORM ACT
D.1 Application and Interpretation.
Effective January 1, 2013, this Appendix D takes precedence over any conflicting provision of
the Plan. To the extent unchanged by this Appendix, the remaining provisions of the Plan remain
in full force and effect. The provisions of this Appendix will be interpreted and administered in
accordance with the applicable requirements of the California Public Employees' Pension
Reform Act of 2013, which are codified in Article 4, Chapter 21 of Division 7 of Title 1 of the
California Government Code, as amended from time to time ("PEPRA").
D.2 No Retroactive Benefit Enhancements.
Any enhancement to a Participant's Accrued Benefit that is adopted on or after January 1, 2013,
or that results from a change to the Participant's membership classification or employment on or
after that date, will apply only to service performed on or after the operative date (as defined in
section 7522.44 of the California Government Code) of the enhancement, and will not be applied
to any service performed prior to the operative date of the enhancement.
D.3 Reinstatement of Retired Participants.
Except as provided under Section D.4, if a retired Participant who is receiving an Accrued
Benefit is employed by, or provides services to, the Employer, he or she will be subject to
reinstatement. For this purpose, "reinstatement" means that payment of the Participant's Accrued
Benefit will cease, and the Participant will resume participation in the Plan in accordance with
Article 3.
D.4 Exception to Reinstatement.
A retired Participant will not be subject to reinstatement under Section D.3 if all of the following
conditions are satisfied:
D.4.1 The Employer appoints the Participant either during an emergency to prevent
stoppage of public business or because he or she has skills needed to perform work of a limited
duration.
D.4.2 The appointment does not exceed a total of 960 hours in a Plan Year.
D.4.3 The rate of pay for the appointment is neither less than the minimum nor more
than the maximum paid by the Employer to other Employees performing comparable duties,
divided by 173.333 to equal an hourly rate.
D.4.4 The Participant does not earn any benefit under the Plan during the appointment.
D.4.5 Upon accepting the appointment, the Participant certifies in writing that he or she
did not, during the 12 months preceding the appointment, receive any unemployment-insurance
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D-2
compensation arising out of the Participant's prior employment with the Employer. If the
Participant accepts the appointment after receiving that type of compensation, the Employer
must terminate the Participant's employment or service on the last day of the current pay period;
and, this Section D.4 will not apply to the Participant for 12 months after the termination date.
D.4.6 The appointment may not begin during the 180-day period after the Participant's
retirement under the Plan, unless (a) the Employer certifies the nature of the employment or
service and that the appointment is necessary to fill a critically needed position before 180 days
has passed, (b) the Employer approves the appointment at a public meeting (the appointment
may not be placed on a consent calendar), and (c) the Participant did not receive a retirement
incentive at retirement.
D.4.7 The Participant must have a bona fide severance from employment, as defined in
the Code, the applicable Treasury regulations and other guidance promulgated by the
Department of the Treasury and the Internal Revenue Service. Accordingly, there shall be no
understanding between the Participant and the Employer, that the Participant will return to
employment with the Employer after his or her retirement.
D.5 Felony Convictions.
If a Participant who is subject to sections 7522.70, 7522.72 or 7522.74 of the California
Government Code is convicted of a felony described in the applicable section or sections, he or
she will forfeit his or her accrued rights and benefits, and will not accrue further benefits, in the
Plan to the extent provided in the applicable section or sections. This subsection will be
interpreted and administered in accordance with the requirements of Sections 7522.70, 7522.72
and 7522.74 of the California Government Code, including, but not limited to, any applicable
rules governing return of Participant contributions, notice, and reversal of conviction, which
requirements are herein incorporated by this reference.
D.6 Funding.
Except as permitted by PEPRA, in any Plan Year, the Employer's contribution to the Plan may
not be less than the normal cost rate, as defined in section 7522.30 of the California Government
Code, for the Plan Year.
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